Friday, February 01, 2013

Gold - Technical Update

  1. Gold seems to have completed a thrust from a triangle (triangles are supposed to precede last leg of a move according to EWP - Prechter). The thrust is composed of 5 waves (marked on the chart).
  2. ROC is forming a HnS, but havent yet given a BD from NL.
  3. Also the top line of the triangle may offer some support to this fall.
  4. But the decider is the wave [1] start (marked by red line), if it is violated, then we can safely conclude that prices have put in an intermediate term top.
  1. A big up trending channel can be seen, and we are still inside it.
  2. But a significant TL (almost an year old) has been violated, that will take its toll on prices.
  3. We may test the lower boundary if the TL, if we take out the supports shown on the daily chart above, for starters.
  4. Whether this break turns out to be a bear market or just another dip to jump on the train, in time we will know!
  5. Right now the picture does not look too good for the bulls.

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