Gold Road Map
Gold is firing off important signals. Just a few days ago we covered the latest in the Monthly Report, and today a few more developments merit immediate attention. Let’s interpret the candlespeak, technical readings, and Elliott Wave structures together.
CANDLES
GLD
GLD confirmed a weekly top and is now working on larger frames. My base case remains a 22% decline off the high to close all gaps; however, recall that Tesla fell about 75% peak to trough in roughly a year under a similar technical footprint. Let’s see how deep GLD goes.
Gold
Last week, gold formed a Bearish Engulfing on the 8D frame. Today, the same message extended to the 10D frame, backed by strong technicals. The 15D frame closes next week. Things are getting frightening.
Elliott Wave: Gold Spot
I think XAU has better odds of taking a classical corrective path. Wave B is now more complex than wave A and is unlikely to be an impulse. Gold is likely forming an extended bearish flag for wave B. For now, the targets for wave C remain intact, but they’ll be refined once the top of (c) of B is confirmed.
Summary:
Gold is building bearish momentum, and bears have already damaged the 10-day frame. The next two weeks have a very high chance of being bearish and will likely affect larger frames as well. Be prepared.
Happy Trading!
