Gold (XAU/USD) Elliott Wave Analysis – Potential for Further Ups

Gold (XAU/USD) Elliott Wave Analysis – Potential for Further Upside?
Market Overview
The chart represents a 1-hour timeframe of Gold (XAU/USD) with an Elliott Wave analysis. The price is currently trading around $3,085, showing a strong bullish trend.

Wave Structure Breakdown
The chart highlights a five-wave impulse structure following Elliott Wave Theory.

Wave (1) and (2): The initial push upwards followed by a corrective retracement.

Wave (3): A strong bullish continuation, confirming an extended impulse move.

Wave (4): A consolidation phase forming a bullish flag/pennant, signaling a potential continuation.

Wave (5): The final leg of the impulse wave is currently unfolding, with a projected target around $3,120 - $3,140 (based on measured move projections).

Key Technical Insights
Trendline Support: The price is respecting the ascending channel, reinforcing the bullish momentum.

Measured Move Projection: A 3.12% increase aligns with previous wave projections.

Potential Reversal Zone: If wave (5) completes near $3,120-$3,140, a corrective ABC retracement could follow.

Trading Plan
Bullish Scenario: Traders can consider long positions on pullbacks within the channel, targeting the $3,120-$3,140 resistance zone.

Bearish Scenario: A break below the channel support could indicate the beginning of a corrective move.

Conclusion
Gold remains in a strong uptrend, with wave (5) nearing its completion. Traders should monitor price action near $3,120-$3,140 for potential profit-taking or a trend continuation confirmation.