Monday, July 16, 2012

Gold Elliott wave analysis for 12-07-2012


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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