Premium Elliott Wave Analysis
A corrective decline off an impulsive rally is just the sort of signal I have been waiting for in gold.
The overbearish sentiment of late has put
I have drawn a parallel trend channel, using the extents of wave ‘i’ brown,
and the low of wave ‘ii’ brown.
The super bullish stance I took on GOLD last night, turned out well so far.
Gold was up $25 at todays high.
In my experience, it is these periods of uncertainty that lead to the largest price moves.
It is almost as if people do not want to believe their own lying eyes!
either way, this structure is a corrective form, and is set to be retraced fully.
If the current wave count is correct, then another rush to the downside is coming soon.
The correction in wave [ii] has been challenging to follow but it has traced out a textbook expanded flat correction.
The larger pattern is calling for an impressive rally which should bring the price up to 1500 at least, there is a possibility
I have altered the declining wedge idea from yesterday to reflect todays action.
The current labelling shows the whole structure off the high as a completed wedge to the downside in wave ‘i’ brown.
Wave (c) seems to have completed a clear 5 wave pattern to the downside off the wave (b) high.
So the next thing to watch for is the creation of a higher low in a 5/3 wave structure off nearby lows.
This will be the first indication of a turn into wave [iii] green.
The alternate wave ‘ii’ scenario is still in play.
If the price does rally again above the high at 1.0639 and into the 1.0680 region, it will conform the alternate wave count.
Wave ‘ii’ will then have completed a complex double combination correction.
The both interpretations of the wave count that I have shown, account well for this action.
And both wave counts call for a wave of selling to begin soon.