- April 13, 2026
- Posted by: EWGFX
- Category: Technical analysis
Gold has completed the larger wave 4 correction as a W-X-Y structure.
Wave 5 higher has now begun. The first subwave, wave (1), unfolded as a leading diagonal – which is textbook for the start of a new impulsive sequence. Price has since rolled over into wave (2), which we expect to develop as an ABC correction into the marked buy zone.
The buy zone sits around the 0.618 Fibonacci retracement of wave (1). This is where we want to see price find support and build a base before launching into wave (3) — the strongest leg of the entire move.
What we need to see:
Wave (2) completes its ABC into the buy zone, holds, and we get impulsive price action off the level. A break above the wave (1) high confirms wave (3) is underway.
What invalidates this:
A break below the wave (2) invalidation level near 4,099 would void the count and put the bearish alternate back in play.
Previous scenario still valid:
Our prior short setup (wave 5 down as part of a larger ABC correction) remains the alternate count. If this bullish structure fails and price breaks invalidation, that bearish path re-activates and we can look for buys at an even better price. For now, the leading diagonal and fib alignment favour this bullish scenario.
Trade Idea:
Entry: Buy zone reaction and trendline break once in buy zone
Stops: Below invalidation
TP1: Wave (1) high / previous structure
TP2: 5,600+ (wave (3) extension)
Optional runner: Hold for the full wave (5) completion into the 5,800–6,000 region