GOLD completing the 3M and monthly candle reveals that the top is in. This long wicked shooting star candle is one of the most bearish in the entire chart and more bearish than any other in since 2011 top.
And this is reflected in the RSI which is showing plenty of bearish divergence since the 2020 peak.
This reveals that all movements since 2011 top have been 2 waves of a 3 wave ABC correction. And now the question is - when and where will the C leg end?
In higher time frame reversals there is enormous attraction of price towards phi (1.618) or inverse phi (1/1.618 = 0.618) as well as equidistant price points such as A and C being equal to 1 in ratio.
Considering each of these provides 3 possible outcomes found with a trend-based FIbonacci projection using pivots 0, A and B.
1) 0.618 extension projects to $1426. This is the most shallow of the 3 projections and if it bottoms in this area it will complete a Running Flat correction. There is plenty of support in this area from $1433.
2) A:C 1:1 extension projects to $1131. This is very deep relative to what most consider possible, but yet it still maintains that the 2015 low will not get challenged and would complete a Regular Flat correction.
3) 1.618 extension projects to $777! Although deep beyond what many would consider this is the strongest phi relation. In addition there is long term support from the 1980 top that price would be attracted to if in range. At the 2015 low price was only 16% away and it may want to revisit that area to consolidate the area and strengthen the trend. It may sound strange to write of consolidation in what would end up being close to a 50 year correction, but I think it is relevant and possible. Also there is plenty of bearish divergence on the 3M chart. This would complete an Expanded Flat correction.
Of the 3 Fibonacci outcomes, the first running flat would perhaps complete around an equidistant 1:1 2024 - 2025 and would most likely take much less time than the expanded flat which would probably be heading towards the latter end of the decade before completing.
This last scenario will probably only take place if it is reflected in a major collapse in other markets, but it does seem to be a distinct possibility - see related ideas.
And so I will hold my short positions and not cover with too much haste because at the very least GOLD will see $1426. Or maybe even $777!
See you there.
Not advice.
And this is reflected in the RSI which is showing plenty of bearish divergence since the 2020 peak.
This reveals that all movements since 2011 top have been 2 waves of a 3 wave ABC correction. And now the question is - when and where will the C leg end?
In higher time frame reversals there is enormous attraction of price towards phi (1.618) or inverse phi (1/1.618 = 0.618) as well as equidistant price points such as A and C being equal to 1 in ratio.
Considering each of these provides 3 possible outcomes found with a trend-based FIbonacci projection using pivots 0, A and B.
1) 0.618 extension projects to $1426. This is the most shallow of the 3 projections and if it bottoms in this area it will complete a Running Flat correction. There is plenty of support in this area from $1433.
2) A:C 1:1 extension projects to $1131. This is very deep relative to what most consider possible, but yet it still maintains that the 2015 low will not get challenged and would complete a Regular Flat correction.
3) 1.618 extension projects to $777! Although deep beyond what many would consider this is the strongest phi relation. In addition there is long term support from the 1980 top that price would be attracted to if in range. At the 2015 low price was only 16% away and it may want to revisit that area to consolidate the area and strengthen the trend. It may sound strange to write of consolidation in what would end up being close to a 50 year correction, but I think it is relevant and possible. Also there is plenty of bearish divergence on the 3M chart. This would complete an Expanded Flat correction.
Of the 3 Fibonacci outcomes, the first running flat would perhaps complete around an equidistant 1:1 2024 - 2025 and would most likely take much less time than the expanded flat which would probably be heading towards the latter end of the decade before completing.
This last scenario will probably only take place if it is reflected in a major collapse in other markets, but it does seem to be a distinct possibility - see related ideas.
And so I will hold my short positions and not cover with too much haste because at the very least GOLD will see $1426. Or maybe even $777!
See you there.
Not advice.
Comment:
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Comment:
Swing low broken. On target.
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Priority trades, round the clock updates and a 1 hour technical video per week 😼.
Make gains, learn technicals 🚀.
$50 per month 👍🏻.
Contact: t.me/dRends35
