Gold Prices Advance In The Middle Of Triangle Pattern
Gold prices continue to consolidate inside a range covering about $1200 to $1295. The Elliott Wave model we are following hints that we could see an eventual breakout above $1295, though it does call for some continued range bound trading until a triangle pattern terminates.
According to the model, I am showing gold prices are grinding sideways in a ‘B’ wave triangle. We are a little more than halfway through this triangle as the market trades higher to complete the ‘d’ wave. So long as gold prices stay between $1204 and $1295 the triangle pattern is the preferred pattern we are following.
Once this triangle exhausts, then we will anticipate a breakout higher above $1295. Once we get closer to the end of the triangle, we can identify some potential targets to the upside. Therefore, as a trader, we want to position in the direction of the trend and look for buying opportunities.
To learn more about trading Elliott Wave triangle, view this hour long webinar recording solely covering the triangle pattern with a free registration.
In the meantime, shorter term traders may recognize the impulse pattern developing from the July 9 low. It appears we are in the final stages of that small impulse and a correction lower towards $1235-$1245 may be nearby. We anticipate the correction lower to be a partial retracement of the July 9 up trend. That correction, if it develops, may offer interested long traders an opportunity. The key level to the bullish bias is the blue wave ‘c’ low near $1204.
The IG Client sentiment reading for gold is at +2.89. The number of traders net long gold have decreased since the beginning of July. This could be a subtle clue for bullish traders as the sentiment reading has been dropping from even more extreme levels. Follow this live reading and learn how to trade with sentiment at this link.
Bottom line, we are anticipating gold prices to find some support and bounce closer to the $1295 ceiling.
This is a shorter term outlook for gold. Read our quarterly gold price forecast to see what may be influencing the longer term cycles.
---Written by Jeremy Wagner, CEWA-M
Discuss this market with Jeremy in Monday’s US Opening Bell webinar.
Follow on twitter @JWagnerFXTrader .
Join Jeremy’s distribution list.
AUD/USD is near its highest price in 2 years; see what is next for the pair.
Golds Glitter In Economic Gloom: Navigating The Tides Of Inflation And Interest Rates
In the labyrinth of global finance, where inflationary pressures mount and central banks grapple with policy decisions, ... Read more
Chocolate Lovers Beware: The Rising Cocoa Prices And Their Impact On Consumer Goods
In a startling economic twist that has left both chocolate lovers and manufacturers grappling with uncertainty, the pric... Read more
Navigating New Frontiers: The Resurgence Of US Uranium Miners In A Competitive Global Market
In the shadow of the global nuclear energy revival and heightened geopolitical tensions, the US uranium mining industry ... Read more
EQT's Integration: Paving The Future Of Natural Gas Amidst The Energy Transition
In an audacious stride within the energy sector, EQT, one of the leading natural gas producers in the United States, has... Read more
Water, The Unseen Consumer In Data Center Operations: A Resource In Crisis?
In the heart of the digital era, the burgeoning infrastructure powering our online lives operates largely out of sight. ... Read more