Simple Moving Average(
) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and
Multiple Time-frame Analysis
Gold's Corrective Wave Count to Complete at
Fibonacci Cluster (2/15)
- We mentioned yesterday that we are in a corrective rally in
gold, but the structure is not clear, and a bullish wave count is
valid as well.
- The momentum is bullish in the 1H chart where the RSI shows a
bearish divergence, and the price action has flattened out, but
another bullish attempt is pending as the RSI remains above 50,
reflecting strength in the near-term.
- The 4H RSI shows the market is a rising wedge, or it could be a
channel if price action accelerates.
- In the larger perspective, we are in a ranging market (after a
bull market), so now that gold has returned to 61.8%, and 78.6%
retracement of recent declines, we should expect some resistance
- The the current resistance pushes a decline below
, we are looking at a decline towards
. However, if the market is strong, it should stay above the
area, middle of the most recent consolidation zone, while pushing
to higher pivots.
- A bullish scenario would be a rally towards the
area, which could be followed by a correction decline back tow
- The 1H chart shows a pattern breakout target of
, and the 4H chart shows a pivot at the
area, so this will the target for the rally, and a place where
the market see resistance.
- This bullish outlook requires at least a close in the 1H
- Otherwise, we could be heading back down to test the
Yes, very unclear bias since we are in the middle of a
Has Gold returned to the bulls, or is the consolidation
period going to extend longer? We would love to hear what you
Subscribe and become a membe
r to share
your views and join live discussions as
well as webinars about the markets.
Fan Yang CMT
Chief Technical Strategist