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GOLD (XAU/USD) - Bullish Wave 4 Retracement in Progress

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📈 GOLD (XAU/USD) - Bullish Wave 4 Retracement in Progress 💥
15-Minute Chart | Elliott Wave | AO Convergence | Bullish Reversal

🔍 Market Context:
Gold has completed a clear 5-wave impulsive move down from the 3228.75 resistance zone. Based on Elliott Wave Theory, we are now seeing the beginning of Wave 4, a corrective retracement before a potential Wave 5 continuation lower.

🧠 Technical Breakdown:

✅ Wave Count:

Wave 3 completed with strong bearish momentum, ending in a classic 5-subwave structure.

We're now seeing a bullish engulfing candle at the termination of Wave 3, signaling a potential Wave 4 correction.

Price is currently showing strength to the upside, likely retracing to test the previous supply zone near 3,228.75.

✅ Awesome Oscillator (AO):

Notice the bullish divergence (or convergence) forming between Wave 1 and Wave 3 lows.

Momentum is waning, suggesting the sell-off is losing steam—an ideal condition for a Wave 4 bounce.

Histogram bars are beginning to flip green, indicating short-term bullish strength.

✅ Price Action Confirmation:

The bullish engulfing candle marks a potential reversal zone.

Wave (5) of 3 appears to be completed in the green box region, aligning with historical demand.

A breakout above the small pullback could accelerate the move toward the 3220–3228 area.

🎯 Trade Idea (Short-Term):

Bias: Bullish retracement (Wave 4)
Entry: On break of bullish engulfing high
Target: 3220 – 3228 zone (Fib or prior structure resistance)
Invalidation: Close below 3190 or break of bullish engulfing low

📢 What to Watch Next:

Monitor for bearish signals around 3228 to prepare for a potential Wave 5 drop.

If price stalls or forms bearish divergence near resistance, it may offer a high-probability short setup.

💬 Let me know in the comments if you're riding this retrace or waiting for Wave 5! Drop a 👍 if you like clean wave structure analysis!
#XAUUSD #GoldAnalysis #ElliottWave #Wave4 #AO #BullishEngulfing #TradingView #PriceAction #TechnicalAnalysis

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