Quick plot to map the remainder of this drop. I have been waiting for this drop and finally happened. Steep drop was a clear "wave 3" with "wave 5" to come.
1510.70 - 1511.95 "should" be strong resistance. If not, then sentiment is less bearish than plotted. 1516.45 - 1516.85 break would invalidate the count.
Previous Gold Analysis (click): <= Just in Time <= Awesome Long <= To the Penny <= 5 mos ago
Of course, I have had total FAILS on some ideas too, not going to pretend. But all of my plots show PRECISE entries, TIGHT stops, and EXACT targets. Precision is the way of the Fib. Almost every turn happens at a Fib Line.
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Ping on the bottom boundary of first resistance zone lets see the reaction. Just the pause exactly at the line says the zone is being recognized.
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We did get a bit of a rejection exactly where expected Ideallly, this would come all the way back to green support zone at $1504. Lets see what EU and UK do with it.
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Following the plotted path quite nicely But here is where it could bounce and foil the count ...
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What "should be strong resistance" on the chart has proven strong resistance The "path of least resistance" looks downward, given the downward spikes which will have chewed up orders.
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Target hit, EXACTLY
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Zoomed in we see the recognition of each plotted zone. Now bulls needs to get past $1499 - 1500 round, or risk being trapped under for some time.
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Based on the weak bounce from my initial target, I am thinking another small leg down, to complete wave 5 at around $1492
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Ping. Extended target hit as forecast in last update just above Now we should see a decent bounce, if the 5 waves are done.
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So last week ended with a perfectly executed 5-wave retrace We should be starting a decent bounce. Whether to resume uptrend, or just a correction of this drop, that will need to be seen as the bounce develops (IF it develops). Overall I think we are headed to $1450. But lets see what risk sentiment does as US opens the week.
Fantastic thank you.I do think (hope) it is creating a bear flag and drops just that bit further .... however, knowing your fib accuracy, i think i am wishful in my thinking.I was correct in my cautionary view yesterday though so there is hope haha
EuroMotif
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@jglouw24, indeed, good call on your caution.
That was a scary drop! Feel bad for any longs that got trapped....
FT_Lexicon
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I'm still curious end of gold bull move, in my pov, gold doesn't reach to the algo target. Until the confirmation of gold's direction, i'll scalp as possible as i can.
EuroMotif
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@FT_Lexicon, Agreed, and same here.
I do not think the bull run is over, but a pullback was needed.
And since it has overextended we got a pretty nasty drop.
Just thinking that such big move "should" have a little follow through, the proverbial Wave 5...
But yeah, just scalping between the zones for me as well....
FT_Lexicon
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Well, this week has no big economic news. Whether it is going on, i'm looking forward to bet the right price on this week.
Dave-FX-Hunter
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nice
FT_Lexicon
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Recently, yen and gold has the same movement, so i keep on watching those 2 chart. :)
EuroMotif
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@FT_Lexicon, Good point.
Gold and Yen are back to being correlated strongly.
Good idea to watch both and go in direction that both point to...