• 2 hours Airbnb In Acquisition Mode Ahead Of IPO
  • 5 hours Gold Hangs At $1,300 Ahead Of Fed Meeting
  • 7 hours Champagne Sales Slow As European Economic Worries Grow Louder
  • 23 hours Putin Signs “Digital Iron Curtain” Into Law
  • 1 day Russian Metals Magnate Sues U.S. Over Sanctions
  • 1 day Tesla Looks To Jump Into Indian Market
  • 1 day Global Banks Lay Groundwork To Re-Inflate Asset Prices
  • 2 days Homeowners Experiment With Risky New Investment Trend
  • 2 days U.S. Tech Stocks Look Increasingly Vulnerable
  • 2 days De Beers To Expand World’s Most Profitable Diamond Mine
  • 2 days Ford CEO Gets Raise After Massive Layoff Round
  • 3 days Germany’s Flirtation With Recession Could Cripple The Global Economy
  • 3 days Where To Look As Gold Miners Inch Higher
  • 4 days Google Faces Billions In Fines From European Regulators
  • 4 days The Energy Industry Has A Millennial Problem
  • 5 days Russian Banks Scramble For Sanction Loopholes
  • 5 days Gold ETFs Take A Hit After Four-Month Run
  • 6 days European Union Takes Aim At Ten New Tax Havens
  • 6 days Goldman Defends Trillion-Dollar Corporate Buyback Spree
  • 6 days $600 Billion At Risk As Boeing Fallout Continues
The Chatroom Cartel Running Global Bond Markets

The Chatroom Cartel Running Global Bond Markets

Eight major banks have been…

Lending: The Good, Bad, And Ugly

Lending: The Good, Bad, And Ugly

Aristotle said, “The most hated…

  1. Home
  2. Markets
  3. Other

Daily Elliott Wave Analysis GOLD Back into Trend

DOW JONES INDUSTRIALS

Topped in wave (5)


30 min

Dow Jones Industrials 30-Minute Chart
Larger Image


4 Hours

Dow Jones Industrials 4-Hour Chart
Larger Image


Daily

Dow Jones Industrials Daily Chart
Larger Image

My Bias: market top is in.
Wave Structure: Impulsive 5 wave structure, possibly topping in an all time high.
Long term wave count: Topped in wave (5)
Important risk events: USD: Building Permits, Philly Fed Manufacturing Index, Unemployment Claims, Housing Starts, JOLTS Job Openings.

The DOW has rallied in wave 'c' and is approaching the upper trendline.
So far the rally has been in three waves, which makes this a complex corrective structure rather than a simple flat correction.

The wave 'a' high was at 20976, with the high of the day at 20972, which suggest one more high might occur before completing wave 'ii'.
The structure off the all time high has not been very implsive so far,
But this could accellerate to the downside quickly if the curent wave count proves true.

Technically this market is very weak, momentum indicators on the 4hr chart are pointing firmly negative.
The euphoria in the market place is indicative of a significant high rather than a developing bull market.
Market action has deteriorated in interest sensitive instruments,
More than one-third of all stocks are below their 200-day moving averages.
In NYSE traded stocks, there were more new 52 week lows last week than new highs, even as the market is at all time high territory!

Every indicator of a healthy market is pointing the exact oppostite way at the moment.
Now is not the time for investing in the stock market.
I suspect the old addage, 'cash is king' will be back to haunt the market soon.

For now watch the upper trendline for signs of a turn down.


GOLD

Current wave [B] - Long to 1550


30 min

Gold 30-Minute Chart
Larger Image


4 Hours

Gold 4-Hour Chart
Larger Image


Daily

Gold Daily Chart
Larger Image

My Bias: Long towards 1550
Wave Structure: ZigZag correction to the upside.
Long term wave count: Topping in wave (B) at 1500
Important risk events: USD: Building Permits, Philly Fed Manufacturing Index, Unemployment Claims, Housing Starts, JOLTS Job Openings.

The super bullish stance I took on GOLD last night, turned out well so far.
Gold was up $25 at today's high.
Resistance at 1211 was taken out impressively, this may be enough to shift the momentum in the market back into the uptrend.

The current wave count calls for this rally to continue in a possible wave 'iii' brown, which should take the price back up to recent highs.
Technically, the price is now rising off recent extreme oversold conditions.
This augers well for the continuing bullish outlook.
Resistance at 1211 has now become support and I want to see this level hold over the coming days.

 

Back to homepage

Leave a comment

Leave a comment