In my analysis I see gold completing an ending diagonal to finish its' 5 wave move up from the lows in December. This will result in gold giving back some of its' gains in the coming months.
It is common to see overthrows in ending diagonals which is why i think price can meet wave III at 1285, perhaps even higher, before making its' decline. However, because wave III was so strong, this 5th wave may fail to reach its' ideal target price (truncation). Therefore I have created a target in the 1270-1290 range for gold to complete its' ending diagonal.
After completing the 5th wave I expect gold to begin its' 3 wave pullback. The initial target will be between 1190-1210. This pullback can target much lower prices, but that can not be determined until the move down develops.
It is common to see overthrows in ending diagonals which is why i think price can meet wave III at 1285, perhaps even higher, before making its' decline. However, because wave III was so strong, this 5th wave may fail to reach its' ideal target price (truncation). Therefore I have created a target in the 1270-1290 range for gold to complete its' ending diagonal.
After completing the 5th wave I expect gold to begin its' 3 wave pullback. The initial target will be between 1190-1210. This pullback can target much lower prices, but that can not be determined until the move down develops.
Comment:
Today we got the over throw of the upper trendline. Price overshot my target, but thats fine fifth waves can and do extend. The ending diagonal is still in play, and I expect a price reversal in gold to be coming as early as next week
Comment:
For anyone following this trade, I am working on an update. I believe we are in the 3rd wave of the "A" wave in this correction....