Gold has been trending higher since making the lows at 12.3.2015. From $1046.54 low, Gold rallied in 3 waves into the 7.6.2016 peak ($1375.15) and then pullback in 3 waves into the low at 12.15.2016 ($1122.81). Cycle from 12.15.2016 low has a 4 hour Bullish sequence as the yellow metal shows 5 swing sequence with a target of $1450.00. As far as Gold stays below below 7.6.2016 peak ($1375.15), there are various possible Elliott wave structures which can form.

$XAUUSD Gold Daily Sequence

However, we at Elliottwave-Forecat.com use The One Market concept to forecast the best path by looking at related instrument. In this case, we are looking at $GDX which is Gold Miners ETF. This instrument is very well correlated with $XAUUSD. GDX is doing a WXY structure from 2.2017 and reaching an area between the $20.75 – $19.61 in which 4 degrees of Blue Boxes should be seen. This area is a strong support for at least 3 waves bounce. Consequently, that bounce will support $XAUUSD (Gold) to rally.

$GDX Daily Elliott wave count

As we can see in the charts and video below, “The One Market only” concept is eliminating some possibilities in $XAUUSD. It leads us to follow the most aggressive path in the yellow metal which is going to $1450, as far as pullbacks remain above the 12.12.2017 low ($1236.66). The market cannot be forecasted only by using The Elliott wave Theory and tools like One Market concepts and extreme areas are needed to provide a better forecast. In Conclusion, we believe $1450 should happen based in the sequences since 12.15.2016 low and the bounce in GDX. Therefore, buying the dips in Gold is the right side.

Video explaning the relationship between $XAUUSD and $GDX

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By Ayoub Ben Rejeb

https://elliottwave-forecast.com

ElliottWave-Forecast has built its reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, Cycles, Proprietary Pivot System, we provide precise forecasts with up-to-date analysis for 78 instruments including Forex, Commodities, Indices and a number of Stocks & ETFs from around the World. Our clients also have immediate access to our proprietary Actionable Trade Setups, Market Overview, 1 Hour, 4 Hour, Daily & Weekly Wave Counts. Live Screen Sharing Sessions, Daily Technical Videos, Elliott Wave Setup and Weekend videos .

Copyright © 2018 ElliottWave-Forecast - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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