XAUUSD: Elliott Bearish Wave Is Still DevelopingGoldOANDA:XAUUSDKelly_Koou_Gold Gold is still trading under pressure after failing to hold the recovery structure above the 4,000 area. From Kelly’s view, the current chart is forming a bearish Elliott wave sequence, and price is now moving inside the next downside phase. The key idea is simple: gold remains weak while price stays below the 3,970–3,980 resistance area, and the lower Elliott wave target is still open. ⟡ Market structure The chart shows gold moving in a clear lower-high and lower-low structure. After the previous rebound failed near the 4,080 area, price rotated lower and is now trading back around the 3,960 zone. The current resistance around 3,970–3,980 is important because it sits near the sell wave 5 zone. If buyers cannot reclaim this area, the market may continue following the bearish structure towards the lower support zone. The downside area around 3,790–3,800 remains the main Elliott wave completion zone on the chart. ➤ Key levels ◌ 3,970–3,980: near-term sell wave 5 resistance ◌ 3,930–3,940: wave 4 reaction area ◌ 3,960: current price reaction zone ◌ 3,790–3,800: Elliott 5-wave cycle target ◌ Above 4,000: area where the bearish structure starts to weaken ⌁ Elliott Wave view From an Elliott Wave perspective, gold appears to be building a bearish 5-wave structure after the corrective recovery ended. Wave 1 created the first downside move from resistance. Wave 2 corrected higher but failed to reclaim the previous structure. Wave 3 pushed price lower with stronger momentum. Wave 4 may be forming as a small consolidation near the current area. If resistance continues to hold, wave 5 may extend lower towards the 3,790–3,800 zone. This is why Kelly would not treat the current reaction as a full bullish reversal yet. The market is still trading below resistance, and the Elliott structure still favours one more downside leg. ▸ Trading scenario Preferred scenario: wait for price to reject from the 3,970–3,980 sell zone before expecting wave 5 continuation. Sell zone: 3,970–3,980 if bearish confirmation appears Stop loss: above 4,000 or above the confirmed rejection high Take profit 1: 3,930 Take profit 2: 3,880 Take profit 3: 3,790–3,800 Alternative scenario: if gold breaks above 4,000 and holds with strong acceptance, the bearish wave 5 setup weakens and the chart may need a new short-term reading. ⌁ Kelly’s view For Kelly, this is still a bearish Elliott structure. The market has not shown enough strength to confirm a reversal, and the current reaction is happening directly below resistance. As long as gold stays below the sell wave 5 zone, the cleaner structure remains to the downside. Gold is still forming a bearish wave sequence. If resistance holds, the final wave may continue towards the lower Elliott target. Share your view below.