Gold may be nearing the end of a complex double three (W)-(X)-(Y) corrective pattern, suggesting that the recent upside momentum could be exhausted and a larger degree bearish wave may be on the horizon.
🔹 Wave Structure Analysis
The initial decline completed an ABC Zigzag correction, labeled as Wave (A)-(B)-(C).
Price then rallied into a W-X-Y double three structure, with the second leg (Y) potentially complete as of the latest high.
The rejection at the recent swing high indicates potential distribution and the start of a new impulsive decline.
🔻 Bearish Outlook
If the count is valid, Gold may be starting a new bearish sequence, targeting lower support levels in the coming weeks.
A break below the short-term support (~$3,340–$3,320) could confirm the onset of a downward move.
Key bearish target zone: $3,120–$3,040, with potential extension toward $2,960 if momentum accelerates.
🛑 Invalidation Level
A daily close above Wave (Y) high (~$3,513) would invalidate the bearish thesis and indicate further upside continuation or a new impulsive structure.
📌 Conclusion:
Gold may have completed a complex corrective structure and is showing signs of weakness. If confirmed, this opens the door for a deeper corrective or impulsive move to the downside. Traders should watch for breakdown confirmation before entering shorts, with tight risk control above recent highs.
🔹 Wave Structure Analysis
The initial decline completed an ABC Zigzag correction, labeled as Wave (A)-(B)-(C).
Price then rallied into a W-X-Y double three structure, with the second leg (Y) potentially complete as of the latest high.
The rejection at the recent swing high indicates potential distribution and the start of a new impulsive decline.
🔻 Bearish Outlook
If the count is valid, Gold may be starting a new bearish sequence, targeting lower support levels in the coming weeks.
A break below the short-term support (~$3,340–$3,320) could confirm the onset of a downward move.
Key bearish target zone: $3,120–$3,040, with potential extension toward $2,960 if momentum accelerates.
🛑 Invalidation Level
A daily close above Wave (Y) high (~$3,513) would invalidate the bearish thesis and indicate further upside continuation or a new impulsive structure.
📌 Conclusion:
Gold may have completed a complex corrective structure and is showing signs of weakness. If confirmed, this opens the door for a deeper corrective or impulsive move to the downside. Traders should watch for breakdown confirmation before entering shorts, with tight risk control above recent highs.
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.
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.