Technically, the chances are there that Gold price will resume upside if some conditions are met. After a classic Elliott wave reversal pattern, it seems price is bottoming with an inverse Head and Shoulder Classic chart pattern about completing. The following discusses the conditions to be met for a bullish run based on 14 July Gold Elliott wave analysis.
14 July, AtoZForex- In the last update, we looked at the possibility of a bullish move. Picking tops and bottoms has been proved to be possible with a far-above-average accuracy. On this platform, we have done this over and over again. The Elliott wave theory with other technical tools will definitely (as has proven over the time) put the odds hugely in our favor. More important is the fact that; when we are right, the profit is often very huge. With proper position sizing and good R/R target, there is a sustainable edge.
Let's review the last update. The chart below was used where we discussed a corrective pattern completing. This pattern was formed within a channel. Breakout above this channel should trigger a huge bullish sentiment. After this pattern, there is more which will be revealed later.
Gold Elliott wave analysis, H1 (click to zoom)
The zone is shown in the green box above. Price is still within this zone. A break above this zone and the trendline should terminate the bearish move and set price upwards. A break below 1205 is likely to lead more digging to 1190.
We had a reversal pattern projected at a reversal zone. It is important to know price action around this zone. What other clues do we have for a rally apart from the channel breakout?. The chart below shows the possibility of an inverted head and shoulder pattern starting at the end of the double zigzag pattern and completing with the recent price action.
14 July Gold Elliott wave analysis: what next?
Gold Elliott wave analysis, H2 (click to zoom)
The neckline of the Head and Shoulder coincides with the breakout neckline of the channel. Once price breaks above, we won't be surprised if Gold resumes upside and you shouldn't be surprised too. Different technical methods can work together. More updates coming. Stay tuned.
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