GOLD Elliott Wave
Yesterday gold was trading in a sideways move, impulsive wave 5 (coloured blue) of the bigger wave (C) (coloured green) was developing. During the Asian and European sessions we could observe descending movement from 1,752.70 towards the 1,742.16 level. Therefore, during the early New York session this commodity did not manage to hold this level and price retrace back to 1,752.51 level. At the moment gold is trading around 1,747.60 level and we are expecting to see price around 1,728.50 level soon. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 4, we can define the potential targets with measuring wave 4, with Take Profit at 1,728.57 (100% of wave 4) and Take Profit 2 at 1,713.34 (161.8% of wave 4). To reduce the risk, we can use invalidation at 1,757.05 level as Stop Loss. Also it is necessary to monitor U.S. Unemployment Claims, Philly Fed Manufacturing Index data that can influence the price.
Support and Resistance
(S3) 1734.1 (S2) 1739.1 (S1) 1745.1 (PP) 1750.1 (R1) 1756.1 (R2) 1761.1 (R3) 1767.1
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1,744.50 with Stop Loss 1,757.05, Take Profit at 1,728.57 and Take Profit 2 at 1,713.34 are recommended.
The material has been provided by Instaforex Company - instaforex.com
For detail explanation and best discovery on market trends you may visit via GOLD Wave Analysis for October 18, 2012 . Thanks for your support on GOLD Wave Analysis for October 18, 2012
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