Thursday, 10 September 2015

Gold (still) showing bullish wave structure on move from weekly chart trend channel support

Weekly chart shows that in late July Gold began a rally from trend channel support. Previous rallies from the nearby trend line have been good for 200, give or take. Why expect anything different this time?

4 hour chart shows the wave structure since the rally began from weekly chart trend channel support. Even Blind Freddy could only see this as five waves up then three waves down, a bullish structure, though equally clearly the immediate trend is down. Right now with the structure bullish but the near term trend down I'm neutral, awaiting a move through either trend line support or resistance to dictate my stance. A move above resistance at the down trend line at 1120 would indicate that the A-B-C correction was finished and a new five waves up is beginning. Downside risk levels are also clear.

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