XAUUSD RSI + Stoch divergence and Elliot Wave Analysis

Gold XAUUSD is currently in an ABC correction wave of the bigger Elliot Wave build up. The upward move was triggered by the RSI / Stoch divergence indicated by the orange line. Afterwards, a 12345 Elliot Wave pattern occured, which completed in the supply zone which was a great moment to take out some profits from the market (as I did). Following now is an ABC correction pattern which will be completed around the 1235 handle. Additionally, we'll be looking at a RSI or Stoch divergence at these levels as the Stoch already reached oversold and will get there after correction pattern is completed but then at a higher level, hence divergence. If this will occur, I'm a sure buyer at these levels.

Good luck trading!

Kommentera:

My trade from 1244 to 1251 worked out beautifully. Shorting now with tight SL towards 1236. Keeping a close eye due to interest rate decision and FOMC.

Order avbruten:

Stopped out short. Entered into a "betting long" on news and breakthrough. Overall, the Elliot pattern has been violated but the divergences on the RSI and Stoch are still intact. My long term trades profited from this but my intraday trading hit a small loss.

This trade idea is closed for now. New entries will be posted in a new idea. Happy trading!