Simple Moving Average(
) 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)
Multiple Time-Frame Analysis
Gold continues to make new highs and is in an impulse wave.
Yesterday, we anticipated support at 1390 area (
Refer to 11.9.2010 Intraday levels and
), and the market did indeed respect that pivot. Today however,
another attempt may go towards 1365-1370 area. Let's look at the
The 4H chart clearly shows gold in an impulse wave, and it does
not really take a wave technician to tell us Gold is in an
bullish mode. Still, seeing the waves develop can help you
anticipate corrections and important pivots.
- An important pivot here is 1350, which would invalidate the
count we have above. That is because we are likely in wave 4, and
it should not overlap 4.
- Instead, since it appears we have completed an internal wave
(v), a zig zag (a)-(b)-(c) correction targets the middle of the
previous wave (iii). 50% retracement could be a logical area,
which is near 1370.
- Let's look at the 1H time-frame to try to stalk this
(a)-(b)-(c) zig zag.
The 1H chart shows some more details on the internal count. The
(a) wave developed after a bearish divergence with the RSI. After
(a), the RSI broke bel0w 40. This suggests it is indeed the first
leg of a correction.
- A similar leg can develop. We see that the projection is
indeed toward 1370-1365 zone. This is also just above the 61.8%
retracement zone, and in the middle of wave (iii), sort of a
guide for this wave (c).
- Then, look for bottoming in this 1365-1370 zone, and a return
to the uptrend.
Do you have another projection of the AUD/NZD? Do
you think the AUD and NZD are basically ranging in the long-term,
so an intermediate term high from March for example respresented
significant resistance. We would love to hear from you.
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Fan Yang CMT
Chief Technical Strategist
Information and opinions contained in this report are for
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