Longer term top may have formed in gold earlier this week. We sent an alert to subscribers on Tues May 19 with a full analysis and entry points with risk.
The up trend since 2015 is a double zigzag pattern labeled w-x-y. I can count the minimum waves in place at the May 19 high. A lot of harmony is found within the w-x-y waves and subwaves.
Prices are sitting on top of the 78.6% retracement level so this is the retracement of last resort. Silver is at a resistance level too.
Let the market dictate if the top is in by falling below support levels as that will be the trigger into a longer term trade.
According to the Elliott Wave analysis, I'm looking for an eventual fall below $1,000 for the price of gold. This will have an effect on GLD too.
i have a question pertaining to your analysis, i believe your long and mid term projections are correct as i have a similar outlook however i am really curious how you came up with the end of the C wave at 1765.00 area? reason being is that your 3rd wave ends at 1.618 which is perfect however your fifth wave is only slightly higher and should go to at least the next Fib level % of 2.168 unless its truncated which it is not as it has crossed the top of the your 3rd wave . im not a EW expert but do have alot of knowledge so im always curious to see what others are thinking in order to confirm or adjust my own thought process on EW. thanks in advance
JWagnerFXTrader
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@silgolbug, it's a good question and we never know for sure what the waves are until the move is over. Therefore, you have to pick up clues to paint the best picture. Aside from your concern, the evidence is:
1. five smaller wave can be counted in place in the jump higher out of the triangle,
2. price near the 78.6% retracement of the 2011-2015 down trend
3. price rubbed the underside of the 2015-2020 grey trend line
Bottom line, there are a lot of longer term head winds. Good news is that we don't have to pick top tick. Let the market fall below the 4th wave triangle to signal more weight that the top is in place.
AdamEiseman
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thanks mate! always learning, one step at a time! cheers!
@PooyaSalehipour, wait for support levels to break to signal that a top is in.
zeynab_saeidy
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Hi
According to its movements last week do u think it will continue going up or will come down
silgolbug
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one more thing to add that i forgot, in an impulse wave if wave 3 does not extend and only goes to the 1.618 level then the fifth should extend and skip the 2.618 level to finish at the more common 3.618 or 4.618... just curious on your thoughts on this comment as well. thanks