Gold – Daily Analysis
The gold candles these days are storytellers in their own right—each one adding a twist to the unfolding narrative. Momentum builds, reversals threaten, and mid-term signals begin to stir. In this update, we’ll attempt to decode what the candles and our usual technical indicators are really saying—and what gold might be planning next.
CANDLES
On Monday, July 21, gold failed big. It lacked only 3 points for confirming a bullish reversal on the 8D after a Bearish Engulfing. This did not go unnoticed – today the metal made a strong Bearish Engulfing on the daily frame. Tomorrow it closes the 2D and 10D frames. It looks like bearish momentum can spread on both these frames. The closure tomorrow could be epic indeed.
ELLIOTT WAVES
Short Term
While all previously discussed counts remain valid, I’ve added another possibility—a large triangle formation shown in cyan. Ideally, wave e of 4 should end below the lower boundary of the triangle but must stay above the end of wave c. Since triangles typically appear in wave 4, this scenario provides clarity: the next move would be wave 5, and its length would correspond to the width of the triangle—a straightforward projection for the long-term chart below.
That said, all counts are still on the table—the wave down could also be wave iii in red.
Summary:
Gold has flipped bearish in the short term and stands a fair chance of elevating bearish odds on the larger frames tomorrow. The weekly outlook remains bearish but is still awaiting confirmation. A sizeable red move on Thursday or Friday could be a key decision-maker for the mid-term view—and possibly even the long-term trajectory.
Happy Trading!
