XAUUSD: Elliott Wave May Be Ending, ABC Buy Setup Is FormingGoldOANDA:XAUUSDKelly_Koou_Gold Gold is slowing down after a strong bearish sequence, and price is now consolidating around the lower support area near 3,960–3,985. From Kelly’s view, the main trend is still weak, but the current structure suggests that the bearish Elliott wave may be close to completion and an ABC corrective rebound could begin soon. The key idea is simple: gold is still in a broader downtrend, so any buy setup should be treated as a short-term recovery trade, not a full trend reversal yet. ⟡ Market structure The chart shows gold has completed a strong decline after breaking below the previous structure. Price is now reacting around the “done wave 5” area, which means sellers may be losing short-term momentum. The market is currently moving sideways near the lower zone, showing signs of accumulation after the wave 5 decline. This does not mean buyers have full control yet, but it does suggest the downside pressure may be slowing. The nearest resistance sits around 4,018. If gold can break and hold above this level, the short-term ABC recovery setup becomes much cleaner. ➤ Key levels ◌ 3,960–3,985: wave 5 completion and accumulation zone ◌ 4,018: nearest resistance and bullish confirmation level ◌ 4,052–4,060: first recovery target ◌ 4,090–4,120: Fibonacci resistance and possible wave C target ◌ 4,180–4,221: higher resistance if the ABC recovery expands ◌ Below 3,950: area where the buy setup weakens ⌁ Elliott Wave view From an Elliott Wave perspective, gold may have completed the final bearish wave 5 near the lower accumulation zone. After a full 5-wave decline, the market often needs a corrective recovery before deciding the next larger direction. The current structure may develop into an ABC rebound. Wave A may start if price breaks above 4,018. Wave B may retest the accumulation zone or hold a higher low. Wave C may extend towards 4,090–4,120, where Fibonacci resistance and prior structure overlap. This is why Kelly would not chase the buy too early. The best buy condition appears only when price can hold above the nearest resistance and confirm that buyers are stepping back in. ▸ Trading scenario Preferred scenario: wait for gold to break and hold above 4,018 before looking for the ABC recovery. Entry zone: after bullish confirmation above 4,018 Stop loss: below the confirmed higher low or below 3,950 Take profit 1: 4,052–4,060 Take profit 2: 4,090–4,120 Take profit 3: 4,180–4,221 if wave C expands strongly Alternative scenario: if gold fails to break 4,018 and loses 3,950, the accumulation setup weakens. In that case, the broader bearish trend may continue and the market will need a new base before any recovery structure becomes reliable again. ⌁ Kelly’s view For Kelly, this is a short-term ABC buy setup inside a larger bearish market. The wave 5 decline may be close to completion, but confirmation is still important. The cleanest buy setup comes when price breaks above the nearest resistance and holds there. Until then, the market is only accumulating, not reversing. Gold may be preparing for a corrective rebound. But because the main trend is still falling, buy positions should stay short-term and confirmation-based. Share your view below.