Gold is moving sharply lower, away from 1337 swing high where the market found a top of wave X that belongs to a big complex decline on a daily chart. So we are tracking a double zigzag which should see more weakness after the black wave B bounce. As we see on the 4h chart, the first wave A could be now finished as the market unfolded five minor sub-waves within it, and as of recent intra-day activity made a bounce higher, probably into wave B.
As we know the Elliott Wave theory suggests that after every five wave development, a three wave contra trend reaction will follow, so in our case we now expect a temporary three wave rise in black wave B, that will ideally find some resistance and a turning point lower around the previous wave 4 at 1215-1231 level.
GOLD, 4H
GOLD, Daily
