Gold’s Corrective Wave Count to Complete at Fibonacci Cluster


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Simple Moving Average( SMA ) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.

Fibonacci Study
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance

Multiple Time-frame Analysis

Gold and Silver (2/11) - Stalking Bearish Attempts

Gold (XAU/USD)
Gold 2/15/2011 4H Chart

- 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.

Gold Daily Chart 2/15/2011

Will Gold respect this resistance cluster? We would love to hear what you think.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Commodities

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