Gold touched our resistance zone up there, around 1286/1290 where wave c) was similar in distance compared to wave a). That’s an ideal reversal zone especially if we also consider a formation of an Elliott wave ending diagonal which is a strong bearish pattern. A drop and close today below 1279 can lead to aggressive selling in the session ahead.
Gold, 1H
An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast, as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B-C formations. In double or triple threes, they appear only as the final C wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.
Elliott wave ending diagonal pattern:
