OANDA’s XAUUSD Elliott Wave Setup: XAUUSD by Kelly_Koou_Gold — TradingView

(1) Wave Completion: The initial downside shock movement ends in the “strong support” area (4,500 – 4,520), establishing a structural bottom and breaking the previous ABC upward correction.

Wave (2) Correction: Price is currently completing a technical correction, pushing higher to retest the “Wave 2 Sell Zone” between 4,560 and 4,580 points.

Confirmation of wave (3): A strong rejection of the current sell zone price will confirm the end of the corrective phase and the beginning of the impulsive wave (3) – which is usually the strongest aggressive move in the Elliott Wave series.

Key technical level

Main sales area: 4,560 – 4,580. Institutional bears are expected to re-establish dominant short positions here.

Temporary support: 4,500 – 4,520. A small interactive bounce is expected at this strong support level; however, this level is unlikely to resist the strong momentum of wave (3).

Downside Target: The main target for the upcoming wave (3) is 4,429.831. The final target that is likely to complete the 5-wave cycle is 4,351.913.

implementation strategy

Trend: Strongly Bearish. Only focus on high-probability short positions.

Operation plan: Take advantage of the current (2) wave correction to enter the 4,560-4,580 area to build a short position. A sustained break below the structural low of 4,500 would confirm the acceleration phase of wave (3).

Invalidation: Any daily close above the double top high of 4,640.561 will completely cancel the current bearish wave calculation.

expect

The price path is expected to expand downward through a 5-wave internal structure. After the strong decline in wave (3) to 4,429.831 and the slight rebound in wave (4) towards 4,471.491, the market is targeting a large liquidity pool near 4,351.913.

Patience is key. Trade according to plan.