GOLD ? Time to Fall Hard? ?
Subscribe
Dear Traders,
The USD appears to be ready to come back with a roar. Gold is showing signs of a strong downward correction.
This analysis will take a quick look at Gold from an Elliott Wave perspective.
Wave Analysis
Gold has been in a large ABC correction since the bullish thrust that ended in late January 2018. This complex correction can be seen within many USD pairs. It would appear that Gold has now completed two thirds of the bearish correction, with the B wave having topped in a triple zigzag on Apr 11. We now require a final wave C downwards to finish off the job. It requires a strong bearish impulse now (i.e. flat), which could see price drop to 1300 or even slightly below this level, within a short period of time. Alternatively wave C could still morph into a more complex Y, which would need to sprout another 3-wave ABC by itself, making it an overall WXY correction. However if we have a peak across to the USDJPY, we could start to get a small bias towards an impulse scenario because the USDJPY will require a true 5 wave impulse to the upside in order to complete at the very least an ABC (A was a diagonal, which means C has to be an impulse), unless we are already in a 1-2-3 uptrend scenario, which would of course mean an even stronger bullish impulse.
Short positions on Gold could be a good trade opportunity, with an invalidation level above the last high of 1356 and a target area of 1300.
All the best along your trading journey
Hubert
.
The charts details are so feint! Can make head or tail more in particular the letters
The charts details are so feint! Can’t make head or tail more in particular the letters
Dear Hubert
You have counted:
1-three wave down to A black
2-then three wave up (w-x-y)
3-anther three wave to second x
4- another three wave to B black
so in my humble opinion DXY is in a triangle. unless the ongoing wave pattern become an impulse
Sorry I ment Gold.
The chances of a triangle are getting very slim given the USD strength that is forming a large impulse across many fx pairs. Both in DXY and GOLD. The black ABC i am counting in gold could likely form a flat (3-3-5), which requires an impulse to the downside within black C. hope this helps.