Current wave [B] – Long to 1550
30 min chart:
4 Hours chart:
My Bias: Long towards 1550
Wave Structure: ZigZag correction to the upside in a large (B) wave.
Short term wave count: Upside from 1120~, target 1550
Long term wave count: Topping in wave (B) at 1550
Important risk events today: USD: Unemployment Claims, Crude Oil Inventories.
Gold entered a corrective holding pattern today, and has remained off yesterdays 1149 high.
The 1150 low at wave 'i' blue is the bearish invalidation line.
If we get an advance through that level, it could signal the bear market is over, as the price would have crossed up above the low at wave 1 blue, that action would rule out the bearish alternative and set the market up for the coming rally.
For the moment I am still expecting one last decline in wave 5 blue, to complete a larger structure.
With the minimum target at 1122 and the lower end support at 1103.
This market is oversold at many degrees of trend right now, and the daily sentiment index, compiled by trade-futures.com, now shows a degree of bearishness not seen since the low labelled wave (A) on the daily chart.
The technical, Elliott wave and sentiment setup have now created the perfect conditions for a very large rally in Gold.
All we need now, is the rally itself!