Hi Traders,
XAUUSD (now at 1184) bottomed at 1160 and started a new rally. Target 1235 and 1250.
ELLIOTT WAVES
The identification of the Elliott Waves often poses some real challenges when it comes to some complex waves labelled by the purists "wyz-x-wyz". Hence, for the time being, I prefer to avoid that fancy stuff and stick to the hypothesis of a wedge formation, labelled 1-2-3-4. See the weekly chart.
Whatever you choose to call it, this kind of pattern can lead to very contradictory outcomes in the very long run. Let's see how.
1) Gold might stage a fifth wave up (wave e) with a "throw over" to the area 1433-1627 (see the weekly chart).
2) Gold might get to the 1337 area and then sink to the area 882-845 (see the monthly chart)
3) Finally, if the pattern on show right now is not a wedge (a-b-c-d) but just a simple a-b-c, there could be a temporary rally to 1235-1250 followed by a downtrend to the area 882-845.
Whatever it happens, all these postulations have just one thing in common: Gold should reach the 1235-1250 area.
CONCLUSION:
With the exception of the above targets, there are too many possible outcomes to be able to identify the most likely pattern in the long run. It is, therefore, wiser to stick to the close targets (see the 4-hours and the daily charts) and wait for more data.
Monthly chart, click to enlarge
XAUUSD (now at 1184) bottomed at 1160 and started a new rally. Target 1235 and 1250.
ELLIOTT WAVES
The identification of the Elliott Waves often poses some real challenges when it comes to some complex waves labelled by the purists "wyz-x-wyz". Hence, for the time being, I prefer to avoid that fancy stuff and stick to the hypothesis of a wedge formation, labelled 1-2-3-4. See the weekly chart.
Whatever you choose to call it, this kind of pattern can lead to very contradictory outcomes in the very long run. Let's see how.
1) Gold might stage a fifth wave up (wave e) with a "throw over" to the area 1433-1627 (see the weekly chart).
2) Gold might get to the 1337 area and then sink to the area 882-845 (see the monthly chart)
3) Finally, if the pattern on show right now is not a wedge (a-b-c-d) but just a simple a-b-c, there could be a temporary rally to 1235-1250 followed by a downtrend to the area 882-845.
Whatever it happens, all these postulations have just one thing in common: Gold should reach the 1235-1250 area.
CONCLUSION:
With the exception of the above targets, there are too many possible outcomes to be able to identify the most likely pattern in the long run. It is, therefore, wiser to stick to the close targets (see the 4-hours and the daily charts) and wait for more data.
Monthly chart, click to enlarge
Weekly chart, click to enlarge
Daily chart, click to enlarge
4-hours chart, click to enlarge
