Market Report: Elliott Wave Analysis of Gold
Extract taken from this weekend's analysis.
With the decline seen this past week it makes the move from $1526.30 a 3 wave move, so whilst price is under $1641, the option is that prices will see under $1526 and likely to test the lower support band between $1460-80.
Unless this pushes back above $1641, the bears are still in control of all the time frames except the daily picture, so the bears have a clear control point short term which is at $1641.
The one issue the bulls have is the RSI is suggesting the trend is still in check from last year's high, so whilst price remains under the RSI trend line, it's not doing the bulls any favors.
A strong break above the RSI trend line and then a strong break above $1650 then onwards above $1680 would be something that the bears need to take seriously.
Bull Elliott Wave Count
Long term the idea of a large wave 4 pullback is very much in check, and there is nowhere near enough price action to discount this move being other than a corrective pullback in the cycle from the year 1999 and eventually see a move towards $2000 for wave 5.
It's a choppy decline, its time wasting, it's doing virtually everything it should for a nasty 4th wave, yet it's not even reached a normal fibbo target around the 38.2% of wave 3.
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Until next time,
Have a profitable week ahead.