Gold Outlook | Is Gold Completing A Gartley “ABC” Correction?

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You will notice from the above chart that Gold completed a 5 wave trend – a down trend which started on 8th November and completed on December 29th.

For traders who are not familiar with Elliott Waves, this phenomenon is explained briefly by the fact that when markets trend, they are typically formed of 5 sections, or “waves”. The 3rd Wave is usually the longest wave, and the 5th wave is usually a signifier that upon its completion a major correction is to be made to the previous trend (see video below).

According to this theory, corrections are formed of 3 sections, also known as a “Gartley” or ABC (see video above). Corrections are typically 50% or 61.8% retracements (also known as fibonacci retracements) of the prior 5-wave trend.

Given this information, it is quite probable that Gold is now completing its final C-wave correction at the 1670 level. Confirmation of this pattern will be made if Gold takes out its December lows.

Gold is certainly going to have a tough time breaking through the wall of resistance facing it right now (see video), in which case a shorting opportunity can present itself soon.


  1. I love the way you explain the technicalities. Makes things seem so much clearer.

  2. it was absolutly clear and logical… the 1. short point (1665-75)is better for me because of smaller stop level. thanx the video 🙂

  3. Excellent comment, Alessio. Keep up the good work!

  4. Hi there – thank you for your comment on my blog. I appreciate it. All the best!

  5. Timi – thank you, I am glad you found the article clear and helpful. About your entry level at 1665, yes by all means – that has a better risk reward. All the best. A

  6. Hi Dave – Thank you for your kind comment on my blog. It’s always good to hear that the article I wrote was not confusing and that it made sense. Thanks for your feedback. Alessio

  7. Whilst I agree with Major resistance around the current price. I think you mean a simple ABC Elliot Wave correction, as a Gartley pattern is labelled X ABCD.

    Additionally upon a larger degree the five waves down should ideally be labelled ‘3/C’ as it unknown whether Gold bull market has finished or not. But I accept that you currently favour bearish action. The other larger degree labelling should be ‘1/A’ 26Sept & ‘B/2’ 08Nov.

  8. Hi Alessio,
    Right now USD is strong and so many commodities and share of (oil companies) are down. If something goes wrong in gulf What will happen to share prices of (oil companies)?
    1) If oil supply is suddenly cut and price per Barrel goes up?
    2) If oil supply goes down and USD start plunging at the same time (oil price goes up anyway)?

    I think people have excellent opportunity to make profit here, people who are aware. Can you please give your opinion on it.

  9. Hi Sawraj – many thanks for your comment on my blog post. It really depends to what extent the share price of those oil companies are correlated to the price of Crude Oil. The correlation may not necessarily be strong. However, if there is a strong positive correlation, then a rising crude oil (due to lack of supply) would naturally increase the share price of those companies. What I would recommend is separate the notion of what you may EXPECT to happen, from what ACTUALLY happens. Too many time I have noticed that the market does something completely different from our EXPECTATIONS – this is because markets are made of people and people are irrational by nature. All the best. Alessio

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