Gold today confirmed a bearish continuation after a High-Wave doji. The odds are bearish a sharp move down could happen any time now. Let’s explore the hypothesis from different angles.
Gold today closed below the yesterday’s low and confirmed the bearish path after the doji candle. From technical perspective, today’s candle was a solid move below 8d EMA. A 8/20 bearish EMA cross completed a few hour ago.
I mentioned yesterday that “The indicators were approaching the state where a sudden flush could be triggered. As the candles rested for 2 days, a sharp decline could happen any time now.” I can see a possible acceleration down and a chance to cross the 50d MA in a day or two.
My projection of a possible wave that I charted a few days ago remains intact. The blue count is primary. The red – alternative.
Remember that gold was damaged greatly in June on the monthly and weekly frames. The long-term odds are still on the dark side.
The operative target for wave 3 (blue) – $1760-1770. Timing – 1-2 days.
The longer term forecast and targets were discussed in details in the Monthly Analysis (link below).
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