GOLD PROBABLY IN WAVE 4 OF AN ENDING DIAGONAL WAVE 5 - LONG
Gold is probably in the wave 4 of an ending diagonal wave 5 which will soon end the long bullish trend
We are anticipating two possible structures here for wave 4 i.e. P1 and P2, where P1 suggests that we are in a triangle wave 4 and P2 suggests that it might be a flat or a zig zag, Corrections are difficult to predict as there are a lot of ways to count them, we are only looking at the most common ones as they tend to repeat themselves over and over again
We will enter long positions in P1 once price break above the triangle channel or in case of a P2 flat or a zigzag, we will enter position at 0.5 or 0.61 fib ratio of the 3rd wave
Stop loss will be the break below the bottom black triangle line or $ 1666 approx.
Stop loss will be the break below the green line or the end of the 2nd wave in P2
If the market plays as anticipated market will enter wave 5 of the ending diagonal and will reach the top black trend line connecting 1 and 3 wave tops, however it is recommended to take trailing stops once the 5th wave up starts as its very common for wave 5 to get truncated or fail after being in a long established trend
Please feel free to comment and share your views
Let see how this plays, Good Luck !
Disclaimer: This is for informational purposes only, anyone taking trades using this idea will be liable of their own loss
We are anticipating two possible structures here for wave 4 i.e. P1 and P2, where P1 suggests that we are in a triangle wave 4 and P2 suggests that it might be a flat or a zig zag, Corrections are difficult to predict as there are a lot of ways to count them, we are only looking at the most common ones as they tend to repeat themselves over and over again
We will enter long positions in P1 once price break above the triangle channel or in case of a P2 flat or a zigzag, we will enter position at 0.5 or 0.61 fib ratio of the 3rd wave
Stop loss will be the break below the bottom black triangle line or $ 1666 approx.
Stop loss will be the break below the green line or the end of the 2nd wave in P2
If the market plays as anticipated market will enter wave 5 of the ending diagonal and will reach the top black trend line connecting 1 and 3 wave tops, however it is recommended to take trailing stops once the 5th wave up starts as its very common for wave 5 to get truncated or fail after being in a long established trend
Please feel free to comment and share your views
Let see how this plays, Good Luck !
Disclaimer: This is for informational purposes only, anyone taking trades using this idea will be liable of their own loss
Comment:
I've posted both bullish supportive wave count and it want be wise not to look into the alternate bearish scenario as well
In the below chart gold might be in a flat correction downward as ABC marked in RED
In the below chart gold might be in a flat correction downward as ABC marked in RED
Comment:
alternate scenario will come into action if price break below the triangle trendline