On Friday gold stopped just a few points away from completing a motive wave down. If it continues down and moves below the Nov 3rd low, it would make a very significant event from multiple perspectives. In such case I have only one scenario where such motive wave would fit and I would like to discuss it today.
Let’s evaluate the perspectives of candles, waves and TA.
This daily overview contains:
– analysis of the daily and weekly candle charts;
– 2hr EW chart with a short-term projection and critical levels;
– daily EW chart and a mid-term forecast.
The quarterly and monthly frames still remain bearish. In two days we will know whether the odds on the monthly frame unchanged or flip bullish.
The weekly candles formed a Tower Top. No doubts about it as it is well supported by TA. Expect an immediate move lower or a few days of sideways before going further down.
On Friday, the metal attempted a recovery that was brutally rejected at the 20 EMA line. Instead of making something bullish, gold formed a foundation for going lower. The move down would be strongly supported by indicators.
The trend is bearish and would remain so until a daily candle closes above ~$1816.
Elliott Waves and Forecast
If gold makes a motive wave down, this path would be the most probable one.
If you would like to continue reading, please subscribe for Premium Content.
Read more of this content when you subscribe today.
Follow the blog on Twitter @InvestingAngles or, if you want all posts in your inbox, by email subscription.