As per Elliott wave analysis of
daily chart, Gold is heading high on ‘x’ wave of the currently ongoing
correction or has started an impulse move upwards. In either case it has to go
up for a while now.
Elliott wave analysis of Gold
on a 5 min chart shows internal subdivisions of this corrective phase. It seems
like a double zigzag of which w –x is complete. Sub wave ‘y’ is also completed
at Friday’s low around 29180. Fibonacci ratio 50% of the rise from 27871 to
30431 is near to 29151. Hence we believe that the double zigzag might have
completed at this level.
At this stage as per Elliott
wave count we are expecting a bounce which could turn out to be another ‘x’
wave or the beginning of another impulse move up. We shall wait and watch for
the wave characteristics of this move.
One line of caution – Since I
do not have the Gold spot price, I have taken the currently running months
future price for plotting the chart. Also I do not have much history data;
hence the bigger picture validation or Elliott wave count is not done.
Gold in hourly chart shows
divergence in 9 hour RSI. This is mildly positive and Gold may see a bounce
here.
Gold hourly chart with RSI (9) showing divergence:
Gold Elliott Wave analysis of 5 min chart :
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