Wednesday, January 2, 2013

Gold - Elliott Wave Update

  1. Gold was rising laboriously making overlapping wave structure. I am counting this structure as an ascending triangle, ending as shown on the chart.
  2. Since the completion of the ascending triangle pattern, we have rallied in 5 waves in wave [1], and also seem to have completed a corrective flat pattern, in wave [2].
  3. If our pattern identification is correct, we may see Gold rising in a probable wave [3].
  4. Composite has formed a positive divergence with prices as well as RSI.
  1. On the daily chart, we can see that we have ended the wave (c) with a possible triangle in wave {5} of (c) of [2].
  2. Composite has formed positive divergence with prices as well as RSI.
  3. At this point the Reward to Risk is quite favorable, and with a small risk we can enter a position with big potential for gain in near future. For a min wave [3] == [1], we get a target of 33900, and @ 161.8% of wave [1], the target for wave [3] comes at 35900 odd levels. SL should be kept below 30600. Yesterday's close was at 30888.

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