Bullish Signals Keep On Coming For Gold!

By: Enda Glynn | Wed, Jul 26, 2017
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My Bias: LONG

Wave Structure: rally in wave [C]

Long term wave count: wave [C] is underway, upside to above 136.00

Important risk events: JPY: n/a. USD: New Home Sales, Crude Oil Inventories, FOMC Statement,

Federal Funds Rate.

The short term action in USDJPY was very encouraging today. The price continued to rise impulsively off the recent low, and broke back up through the 50% retracement level at 111.64, all positive signs so far.

The price structure is tracing out a possible wave '1' pink and it is beginning to look like a five wave form on the very short term charts.

If the current rise breaks 112.42, That will help the bullish case immensely from here.

For today; As usual, We await a bullish Elliott wave signal off the recent low in the form of 5 waves in the direction of the trend, and 3 waves against.


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My Bias: market topping process ongoing

Wave Structure: Impulsive 5 wave structure, possibly topping in an all time high.

Long term wave count: Topping in wave (5)

Important risk events: USD: New Home Sales, Crude Oil Inventories, FOMC Statement, Federal Funds Rate.

The DOW rallied about 150 points today to a new all-time high, and then came an immediate decline to begin a possible wave 'ii' pink. I have shown a three wave structure underway in wave 'ii' pink off the recent high. The interim low was at 21574 yesterday, so a three wave decline in wave 'ii' pink should finish at or just below that level tomorrow. A further break above 21655 will likely signal wave 'iii' pink has begun. The 4hr RSI broke above the centerline again today in a final bullish signal for this rally.

On a side note:

I have noticed that President Trump has referenced the recurring stock market highs as a direct resultant of the new administrations policies.

I would advise against taking credit for the bull market.

Because you may well be held accountable for bear market to come!

If wave 'ii' completes tomorrow, then we can expect wave 'iii' to break out to new all time highs again before the week is out.

The initial target for wave 'iii' pink lies in the region of 21877, this is a Fibonacci 161.8% projection of wave 'i' pink off the wave 'ii' low.

For tomorrow; Watch for wave 'ii' to complete in the region of 21550.

And for wave 'iii' to begin from there.


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My Bias: Long towards 1550

Wave Structure: ZigZag correction to the upside.

Long term wave count: Topping in wave (B) at 1550

Important risk events: USD: New Home Sales, Crude Oil Inventories, FOMC Statement, Federal Funds Rate.

GOLD began its decline into a possible wave 'ii' brown today.

The declines look corrective so far so the overall interpretation remains the same.

I have labelled the initial decline off the high as wave 'a' pink.

Wave 'b' pink could be underway as I write, and wave 'c' should follow.

The decline so far looks like it could be the start of a flat correction.

This would trace out a 3,3,5 internal structure.

The previous fourth wave low of one lesser degree lies at 1234.97.

1231.96 is the 50% retracement level.

This is a nice cluster of support and forms the likely target for wave 'ii' brown.

One measure of sentiment I follow Is the 'daily Sentiment index'

This index is compiled by tradefutures.com.

The index is now rising off an extreme low of 14% bulls among futures traders, which was registered last week.

Another sure sign that the market is turning up now in a big way!

For today; Watch for a continued decline in wave 'c' pink to complete a three wave correction.

Once wave 'ii' is complete, we will have another bullish Elliott wave signal in place.

By Enda Glynn for Safehaven.com


Enda Glynn

Author: Enda Glynn

Enda Glynn

Enda Glynn

I class myself as an Elliott wave trader now, but that's not how I started out though! It took me a long time and a whole lot of pain, to finally understand what drives the price and how to use Elliott Wave correctly!

I have been trading for years and I have tested every trading system and strategy under the sun! I used to pick entry points at random based on emotion or news events or something I heard on TV! It did not take long to destroy my capital! I have blown out my account balance before, and I had to start again,

from scratch!

Believe me, I am well acquainted with failure in trading! Im sure that the above scenario is pretty familiar to you too. We have all been there. About 10 years ago I discovered The Elliott wave Principle and its method of market analysis. Since then, I have spent years learning, testing and trading, using the wave principle as the backbone of my analysis. I even went to college to study macroeconomics and econometrics. I graduated with honours degree back in 2012. The financial market knowledge and statistical edge I gained after my degree added another level to my trading. The difference in my trading approach using the wave principle, compared to before, is like night and day.

The price started to move "my way" more and more often. The wave model, offers me a lens to view market action through, which no other form of analysis can do. Elliott wave analysis, helps me answer four key questions when I am contemplating a trade:

• What direction the price is trending.
• How far is this trend likely to go.
• Where can I enter a trade with the best risk reward ratio.
• And most importantly, at what point am I definitely wrong?!

The wave principle helps me improve my trade entry, tighten up my money management and in turn increase profitability. Seeing the waves unfold before your eyes is a very rewarding experience, It is almost like peering into the future! That is how the wave principle helps my trading, and that is why the wave principle will improve your trading. It took a long time to finally master Elliott Wave Principle. After over a decade of hard work, research and learning I can call myself an expert in the field. I regularly contribute to major trading communities at FXStreet, Forex Factory, Traders Planet. I am a chief Elliott Wave analyst at HumbleTraders.

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