Gold did not move much last week so our view remains unchanged. We are expecting another swing high as we see slow price action in tight range that looks like a triangle in wave b). as such, price is expect to rise to around 1240/1250 before downtrend can be coming back later this month.
Elliott Wave Education: Triangle Pattern
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
Contracting Triangle
- structure is 3-3-3-3-3
- each subwave of a triangle is usually a zig-zag
- wave E must end in the price territory of wave A
- one subwave of a triangle usually has a much more complex structure than others subwaves
- appears in wave four in an impulse, wave B in an A-B-C, wave X or wave Y in a double threes, wave X or wave Z in a triple threes