• 3 hours 3 Oil Stocks Ready To Weather The Geopolitical Storm
  • 21 hours Gold Miners Eye Big Third Quarter Profits
  • 1 day The U.S. Doubles Down On Domestic Lithium Production
  • 2 days Reddit Trader Scores 14,000% Returns On Rogue Trade
  • 3 days The Tangled Web Stretching From Turkey To DC
  • 3 days The U.S. Dollar Eyes Greater Upside
  • 3 days More And More Americans Believe A Recession Is Looming
  • 3 days Is The Pot Stock Boom Over Already?
  • 4 days How The California Utility Crisis Could Have Been Avoided
  • 4 days The Ugly Truth About Investing In Private Equity Deals
  • 5 days The World Is Facing A $1 Trillion Food Waste Crisis
  • 5 days Is It Time To Buy The Dip In Gold?
  • 5 days The History Of Oil Markets
  • 6 days Three Stocks To Watch Ahead Of Earnings Season
  • 6 days Markets Flat As Bulls And Bears Battle It Out
  • 6 days The Mining Industry Still Has a Human Rights Problem
  • 7 days 5 Billionaires Booted From Their Own Companies
  • 7 days Can Toyota's Hydrogen Car Take On Tesla?
  • 8 days Why Universal Basic Income Won't Work
  • 9 days Is This The Real Golden State?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

TheWaveTrading

TheWaveTrading

TheWaveTrading

My goal is to establish the most likely path that the price of a particular asset will undertake and profit through ETF instruments both on…

Contact Author

  1. Home
  2. Markets
  3. Other

Review of The Elliott Wave/Technical Pattern of Gold

It is probable that the US equity market is involved in a topping process.

Going forward we should monitor Gold.

From the 2011 top, Gold and SPX (SP 500) have been trending in opposite directions if the negative correlation is maintained and the scenario that SPX is approaching a top is correct we should expect Gold to outperform (Safe haven status)


Monthly time frame:

  • The decline from the 2013 low has adopted an overlapping structure that could be forming a Falling Wedge
  • Barring a truncation, theoretically, the pattern still needs one more lower low in order to be completed
  • The Bollinger Band is getting tight suggesting that a large move is in the cards
  • So far we don't have a monthly bullish candlestick
  • In order to at least expect a larger bounce within the boundaries of the converging structure Gold should reclaim the 10 mma = 1218

Monthly Gold Chart
Larger Image

  • Monthly Oscillators are giving mixed signals:

- RSI has a positive divergence since June 2013 : Positive signal

- Stochastic has a bearish cross: Negative signal

- MACD has a slight bullish cross: Positive signal

Monthly Gold Momentum Chart
Larger Image


Weekly time frame:

  • Regardless the scenario of the Falling Wedge if Gold prints an Inside Week candlestick odds should favor a sideways / upward move provided the 20 wma = 1213 is reclaimed
  • An inside candlestick (Harami) in a down trend is a potential bullish candlestick
  • So we have as support last week low = 1174 and as resistance 1213 and 1227

Weekly Gold Chart
Larger Image


Daily time frame:

  • We have a potential bullish Flag
  • After yesterday's wide range body odds should favor some consolidation activity. If the support zone located at the 50 d ma = 1192 holds odds should favor follow through to the upside. If the resistance at 1213 is breached a target at the April peak - 200 dma would be doable.
  • If the Flag pans out the measured target (Equality extension) for he next leg up is located at 1258. Gold would still be inside the potential Falling wedge but it would reclaim the 200 dma which today stands at 1227

Daily Gold Chart
Larger Image

 

Back to homepage

Leave a comment

Leave a comment