On the daily chart of XAUUSD, we are witnessing a clearly defined Elliott Wave structure, with the potential formation of an extended wave (5) targeting the $3,726 region — aligned with the 0.618 Fibonacci extension. This is a key technical signal that could capture the attention of both long-term investors and strategic swing traders.
1. Elliott Wave Overview:
Wave (3) concluded at the peak around $3,365, followed by a textbook a-b-c corrective pattern.
Waves "a" and "b" are clearly identifiable, with wave "c" appearing to have completed.
The current price action suggests a rebound from the bottom of wave c — a strong indication of a possible start to wave (5).
2. Wave (5) Target Zone:
The Fibonacci 0.618 extension projects a target near $3,726 — a significant price level the market could approach if bullish momentum builds up.
This level also serves as a psychological resistance zone, so expect possible volatility as the price nears this area.
3. Price Behavior & Confirmation Signals:
Recent candlestick formations reveal renewed buying interest, with multiple bullish candles showing long bodies and lower wicks.
Holding above the key support around $3,300 is crucial for confirming the formation of an uptrend.
A breakout above the $3,365 high (wave (3) peak) would be a strong signal that wave (5) is in motion.
4. Suggested Trading Strategies:
Buy limit: Consider entries around the $3,310 – $3,320 support zone on a retest.
Buy breakout: Trigger entries if price breaks decisively above $3,365 with strong volume.
Take profit: Gradually scale out positions around the $3,680 – $3,726 area.
Stop loss: Place stops below the wave c bottom — under $3,245.
5. Conclusion:
XAUUSD is currently in a sensitive phase with a high probability of a bullish breakout. The Elliott Wave structure shows that there is still considerable upside potential. However, traders should maintain strict risk management, as wave (5) formations often involve significant price swings.
1. Elliott Wave Overview:
Wave (3) concluded at the peak around $3,365, followed by a textbook a-b-c corrective pattern.
Waves "a" and "b" are clearly identifiable, with wave "c" appearing to have completed.
The current price action suggests a rebound from the bottom of wave c — a strong indication of a possible start to wave (5).
2. Wave (5) Target Zone:
The Fibonacci 0.618 extension projects a target near $3,726 — a significant price level the market could approach if bullish momentum builds up.
This level also serves as a psychological resistance zone, so expect possible volatility as the price nears this area.
3. Price Behavior & Confirmation Signals:
Recent candlestick formations reveal renewed buying interest, with multiple bullish candles showing long bodies and lower wicks.
Holding above the key support around $3,300 is crucial for confirming the formation of an uptrend.
A breakout above the $3,365 high (wave (3) peak) would be a strong signal that wave (5) is in motion.
4. Suggested Trading Strategies:
Buy limit: Consider entries around the $3,310 – $3,320 support zone on a retest.
Buy breakout: Trigger entries if price breaks decisively above $3,365 with strong volume.
Take profit: Gradually scale out positions around the $3,680 – $3,726 area.
Stop loss: Place stops below the wave c bottom — under $3,245.
5. Conclusion:
XAUUSD is currently in a sensitive phase with a high probability of a bullish breakout. The Elliott Wave structure shows that there is still considerable upside potential. However, traders should maintain strict risk management, as wave (5) formations often involve significant price swings.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.