WallStScalper

Gold finished with EW-wave 4 correction?

616 3 1
Gold             has in EW-terms made an a-b-c correction and within harmonic patterns an a-b-c-d pattern. That could be the reason why we see gold             making - on the smaller time frames - a shs             that could be the start of more downside to come... the 5th EW-wave down to the level around 1000. Notice the spinning top candlestick made today. But as always time will show.
Safe trading Gents!
BM
Take a look at the XAUUSD for a longer perspective than available in the Sep contract. The Oct-Jun down leg can be interpreted as a motive wave, with Jun being the 5. The A-B on the above can also be interpreted as a 1. Perhaps the Oct-Jun was the A leg of a larger corrective wave, which would imply the uptrend that started Jun 28 is building the first leg of the B wave. I agree that a pullback is in the not to distant future, but suspect it will hold off for a week or so while the Syrian situation clarifies.
Best of luck in your trades.
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I do follow your arguments all the way. The perspective for the time being is gold being at a junction where change is going to prove the next direction. The Syrian situation might create some volatility in the short run. To days action on gold does all ready show the shs being the reality. Target for the shs is around the 1400 level.:
snapshot
If this "correction will be all we see then I suspect gold to move higher, but it has a long term resistant at the recent top shown on this chart:
Gold.. A thin red line as resistance
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I went back and took a look at the past two years of dailies on the XAUUSD. I can see a case (that I hadn't noticed before) for the Oct 2012 - Jun 2013 leg being a 3. That would suggest that we are building the A leg of the 4, which would fit in nicely with the Syrian situation (and some other political/economic issues) and give us a downside target in the 1000-1100 area (guessing in late 2014 or early 2015).
Thanks for giving me a different perspective on this.
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