Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- Gold has been rallying from 1309 after developing an inverse head and shoulder.
- We look to have completed an impulse wave down to 1309, so we should be seeing a corrective rally. However, the possibility the current rally can turn out to be impulsive is there.
- The preferred count though, is that we are in a rising wedge in the terminal wave e now, testing a 61.8% and 78.6% fibonacci retracement cluster in the 1375-1380 area.
- If this area does indeed provide resistance, and the market does decline, the bearish scenario opens back up towards 1309 if the market breaks below neckline at 1350, and more importantly 1345. A failure to break below 1345 allows for a bullish impulse wave development towards 1388.
- The daily chart shows the significance of 1388 as a resistance. A break above that points to the 1420-1425 area and the all-time high at 1431.
- A break above 1388, would then be in a flat pattern, or have completed the correction, and in a bullish continuation.
- However if these near-term resistance levels hold, a decline from there suggests we are in a zig zag that can extend as low as the important pivot at 1265, which is where a 61.8% retracement level resides as well.
Will Gold respect this resistance cluster? We would love to hear what you think.