GOLD: Double Zigzag Hints to Further Weakness

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A successful break below 1459 support seems to suggest that XAUUSD is forming a  double zigzag pattern.

The complex bearish formation consists of intermediate waves (w)-(x)-(y), which are part of a longer degree formation consisting of waves ➀-➁-➂-➃ and ➄. Currently, markets are correcting to complete primary wave ➃ of the 5-wave impulsive move.

With waves (w) and (x) of the intermediate degree completed so far, we can expect wave (y) to end soon.

The structure of the intermediate wave (y) seems identical to the one of wave (w), which is usually the case when we look at zigzags. They both consist of minor waves A-B- and C.

The last minor wave C of the intermediate wave (y) wave is heading to its conclusion. Another impulse leg down is likely to complete the primary correction.

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Looking at the 1H timeframe, we see that three of the five-minute waves of the minor impulse wave C have been completed.

Over the past few hours, bulls have taken over control from bears to correct the market in the minute degree. This correction could trigger the last shorts anywhere above 1450, but perhaps even closer to 1460.

The completion of the intermediate wave (y) could end near 1419, should we consider the zigzag equality guideline.

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