It is making a bottom here and may still drop a little more but it is currently in the "overthrow" of the leg E of an ED. And within that larger ED, it is finishing a smaller ED. When all this is done, we will see a HUGE reversal take place.
What we could've seen happen in the past weeks was the completion of a truncated wave 5 to complete the larger wave (A). That truncated wave 5 may have ended with the completion of a wave (v) ED. And last week's breakout of that long sideways pattern could be just the start of a large upswing. We'll look for prices to drop back down off the rejection of that upper TL of the ED and then for it to turn around and retest and then break that TL.
What is apparently happening here is that prices are trading within a range which is a for a continuation lower. Probably will make another small move back up and then head down to breakout of that flag and head lower to complete the wave (v) and the overall wave B. After which, we should see a HUGE rally back up.
We saw oil hit the $50 level in the past week. And then it withdrew from there as expected. But then it broke through and hit the $51 level. And then got rejected and is now headed lower. BUT...what I see is a REAL possibility is that this rejection off the $51 level was only temporary and that we are going to see oil rise up and possibly head towards the $60 level soon. We'll be looking for signs that this small drop is ending and looking to BUY again. But we'll need to be careful as it can't be ignored that prices have broken the MAJOR uptrend TL and that could have signaled the end of this uptrend.
Last week, this pair continued to drop off the highs in what should be the wave a of a larger wave (b). We should be seeing a bounce pretty soon from the completion of this small wave a into the wave b of (b). And then another large drop down in the wave c of (b).
XAUUSD ( Gold )
Gold is now still within a correction in what should be the wave 4. It dropped off the highs from the wave 3 ending in what should be the wave (a) of 4. Since the lows of that wave (a), prices have moved back up in what should be the wave A of the larger wave (b) of 4. From here I am expecting prices to retreat back down in the wave B of (b).
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