Wednesday, January 6, 2016

Gold Expected Rally: An Alternative View.

On 21st December, 2015, we posted a forecast on an expected Gold rally. We quoted thus:

Gold might still fall in the future to $671.11 after an expected rally to $1450-1500 price levels
 This view was supported as a result of a clear 5-wave impulse wave from $1920.50 which was expected to be supported above $1000; and was labelled as a clear 5-wave.
We posted this chart.



The 5th wave is an ending diagonal pattern formation . It can be seen in the daily chart below as we have posted in the analysis.



Read the full analysis here.

Price is expected to rally and if it breaks the demand trendline of the diagonal, it will be expected to soar to $1399 and above.

Price will be expected to rally, if the diagonal is completed, in a motive wave.

Meanwhile, we have an alternative view.
Can price rally a bit and then dip further below $1040?... Yes it is possible.

The chart below shows a clue.




It can be seen from the chart above that the first four waves of the diagonal are typical 3-waves corrections. The 5th wave can form the same pattern- rally in corrective waves and fall to be contained by $1000.



The chart above is the hourly chart which shows the first leg of a probable 3-wave 5th leg of the diagonal. A rally up and then a dip down will be expected if the rally is corrective.

The first four waves of a diagonal are usually 3-wave drives, the 5th wave could either be motive or corrective.

Price itself will prove which of these scenarios will hold.

Our subscribers are already in a buy position since december and we are watching closely to see how price reacts if a bit of rally will happen or a total breakaway.

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To join the next elliot wave mentorship programme, coming up on 25th February 2016, send a mail to Forexmaster05@yahoo.com

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