Elliott Wave technical analysis from Knightsbridge Academy
Gold is still working through an ABC correction to complete the first bullish cycle to the upside. We were looking for price to hit the 1319.20 before a move higher. However recent price action now suggests a rather truncated 3 wave pattern which means a wave C finish around the 1328.00. At a minimum it should break the wave 'a' low at 1332 over the coming sessions. This will create a three wave correction off the wave (i) high, and setup for a larger rally in wave (iii) blue over the coming weeks.
I am wondering if today's low in cable was just wave '3' of 'v' completing. This would suggest that wave '4' is now correcting higher, and wave '5' of 'v' sill drop again with a break of the lower support at 1.2477 on the cards. I would be even happier if the larger degree wave (iii) fell into the lower trend channel line again before making it's final low. Tomorrow; watch for a three wave correction in wave '4' to complete below 1.2651 at wave '1'.
sustained heavy selling yesterday and with that came the completion of wave 3 of 3. As of this morning price has stabilized. This is viewed as a small fourth wave within wave '5'. So we should see another drop tomorrow to complete wave '5' and wave 'i'. The correction in wave 'ii' is likely to start on Thursday. And once that correction is complete, wave 'iii' of (iii) should accelerate lower.
The greenback is refusing to budge. Price has continued to coil up
into what looks like a leading triangle. Last night we saw price hit resistance
and then quickly rebound lower. As things stand, we continue to sway towards a
bullish bias and have labelled the current action as a truncated 5 wave
structure. Our alternative bearish count is still very much alive and kicking,
if going this way, we can expect to see a sell off towards 107.200 before
moving off tough support. This week: watch for wave 3 to begin a strong (and
impulsive) move to the upside. A break of 109.200 will confirm a more bullish
reading. FOMC verdict tonight by the US
administration. This could be the catalyst we need to get price moving.
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