Forex Trading Library

The Bullish Trend Continues

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The current Gold chart suggests the development of a large correction pattern, which takes the form of a cycle triple zigzag.

The 1H timeframe shows the structure of the bearish cycle intervening wave x, which looks like a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

There is a possibility that the cycle wave z takes the form of a primary double zigzag Ⓦ-Ⓧ-Ⓨ, and now the price is in its first actionary wave Ⓦ.

Apparently, the bearish correction (B) of the intermediate degree could come to an end as part of the primary wave Ⓦ. Thus, in the near future, the price will rise in impulse (C), which may complete the zigzag pattern (A)-(B)-(C) near 1737.33. At that level,  impulses (A) and (C) will be equal.

Let’s consider the second option, where the downward movement of the pair continues in the cycle wave x. The final primary wave Ⓩ is under development.

Thus, a downward movement of XAUUSD is expected in the near future. The primary wave Ⓩ may take the form of an intermediate zigzag (A)-(B)-(C).

The final of the correction pattern zigzag (A)-(B)-(C) is possible near 1565.62. At that level, primary wave Ⓩ will be at 76.4% of primary wave Ⓨ.

Only after reaching the specified level, the development of the cycle wave z will begin.

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