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Daily Elliott Wave Analysis GOLD Back into Trend

By: Enda Glynn | Wednesday, March 15, 2017


Topped in wave (5)

30 min

Dow Jones Industrials 30-Minute Chart
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4 Hours

Dow Jones Industrials 4-Hour Chart
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Dow Jones Industrials Daily Chart
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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.


Current wave [B] - Long to 1550

30 min

Gold 30-Minute Chart
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4 Hours

Gold 4-Hour Chart
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Gold Daily Chart
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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 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.


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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