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waleedkhan
Jul 28, 2014 1:08 AM

Gold missed Zigzag; now a double zigzag formation possibility?  Short

Gold/U.S. DollarFXCM

Description

To me this seems like a possible
2nd corrective zig zag wave;
where B was a perfect 61.8
retracement which set up for a
zigzag AB=CD pattern, but on
friday price reversed on C point;
which disallowed the zig zag
to complete.

Whenever a zig zag target misses;
there is always a possibility of a
double zigzag to be formed hence
I am drawing this chart with an
expectation to see a bullish X leg
which should end somewhere in the
vicinity/range of B; after which a
double Zig zag pattern should resume
and stay in line with the current bearish view.

However if the top of B gets taken
out or if we don't see an A wave below
C(w) then this count is invalidated and
it could be safe to assume that a
bullish wave has begun.

An alternate view is seen in the red arrow
which is based on the assumption that
1312 resistance will not be taken out.
Comments
waleedkhan
However if it starts taking off more; then this Ew count becomes invalidated... and an alternate count would have these current bull bars on the hourly chart as part of wave 3...
waleedkhan
Price is now on B...

Have to see how PA reversal candles act over here...
waleedkhan
It is quite possible that we are in the middle of the AB leg and we might have one more push higher; before BC starts...
However if 1280 support doesn't hold then It should be safe to assume that AB has ended and price is on its way down.
waleedkhan
bullseye! or bearseye?

now looking out for price action reversal candles... still not convinced with the volumes
waleedkhan
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