Gold Price Analysis: The Bullish Pattern Poised for $1375 Retest

Gold prices have been correcting lower for the past couple days and have reached a zone of interest. The Elliott Wave model we are following hints at supporting forming between now and $1310. The next move higher then becomes an ending wave.

It appears as though prices are correcting lower in a small degree wave iv. Typically wave iv in an impulse corrects towards the 38% retracement level of wave iii. If my wave labelling is correct, then gold prices may find support near $1317 and possibly down towards $1310. If price corrects below $1274, then the wave count is incorrect and we will reassess what the other models are indicating.

If gold prices are supported in this $1310-$1320 price zone, then we will look for a break higher that tests $1375.

$1375 is a big level for multiple reasons. There is a wave relationship that appears near there. Wave v is .382 the length of waves i-iii. In addition, the July 2016 high circles around in the same price zone. Therefore, we expect a battle between the bulls and bears to occur near this zone. We will likely see a reaction lower, but we cannot rule out a break higher

Article source: https://www.dailyfx.com/forex/technical/elliott_wave/gold/2017/09/14/bullish-pattern-poised-towards-1375.html?DFXfeeds=forex:technical:elliott_wave:gold