Elliott Wave Analysis of Gold - Wave 4 likely complete at 1,677

 

Elliott Wave Analysis of Gold - Wave 4 likely complete at 1,677

Gold has been in a descending correction since the 2,075 peak in early August 2020. I count this decline as a wave 4 correction, which means we still have wave 5 higher to come. 

In my view wave 4 completed with the test of 1,677 and wave 5 is now developing and should ultimately break clearly above the former peak at 2,075. The cycles also confirms that a important low should be in place and the upside will be the dominating in the weeks/months to come. 

In the commodity universe wave 5 extends and becomes equal in length to the start of wave 1 to the peak of wave 3 which gives us a target at 2,704, but we could easily see wave 5 extend well beyond that target towards the 161.8% extension target at 3,339. 

Short-term, I would like to see resistance at 1,765 break as a solid indication that wave 4 now is complete and wave 5 is developing. 

Remember the trend and patience are your friends 

Elliott Wave Analysis of the S&P 500 Index - This could be bad...

 

Elliott Wave Analysis of the S&P 500 Index - This could be bad... 

The trendline support for March 2020 low is being tested and on the hourly chart, we first saw a small S/H/S top now followed by a potential invers Cup with Handle and a break below the neckline at 3,808 could spark the S&P 500 lower to 3,665 and potentially much lower. 

Both the long-term and the shorter term counts all indicates a more serious top could be in place, but we need more clear evidence before being able to conclude this is in fact the case. So be on the outlook for a break below support at 3,694 that will indicate a top is in place. 

We have all the ingrediency, but will the be mixed correctly? Time will show...

Remember the trend and patience are your friends