In my previous forecast I was expecting that the market will turn around 1260 region which is exactly what happened. It seems that the market is now going down in a corrective structure and should face support near the 1235 to 1220 region.
I might have to make some changes to my previous counts, but that is all some technical stuff, the market is basically giving the action that I expected and that is all that matters from a trading perspective.
There are basically 2 strategies that we can use here to enter swing long positions :
1. Buy on pullback in the 1225 - 1230 region only if you see reversal. Note the this is the high probability region and hence I'm expecting reversal here, if the reversal happens beforehand then we have to follow the 2nd strategy.
2. Buy on break of the 1260 region, basically the resistance.
Untill the market reaches the support region it is a sell on Highs for Intraday Traders.
You should view my previous posts on Gold for more clarity.
Hello @NeeravYadav I don't think Gold can make pullback to support region. Reason are following:
1) Gold is testing trendline breakout which is on 1240.
2) 1240 hold weekly pivot and monthly pivot is on 1236.
3) If you decompose your impulse count, wave 3 and wave 5 are equals, this violate elliott wave rule. Either you need to put w-x-y correction, where w will be 1259 and x can be your support level. But with current structure, it look like we are in nested impulsive count which suggest max retracement on 1240 or max by 1236.
4) 1240 can also providing strong support as it's previous wave 4 support zone in lower time frame.
If I want to trade, I will follow strategy to catch next bull wave in Gold
1) I will wait to see channel breakout which was rightly shown in your chart.
2) I will enter 1/2 position here on market @ 1240 and enter next half on channel breakout
3) Once 1260 break, I will move stoploss to BE.
Sorry to make detail in your post but thought of contributing here rather creating another post. BTW, we are on same boat only few levels we are not matching so thought of making collaboration.
Best of luck!!!
NeeravYadav
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Hi @Hoag thanks for the comment.
I do agree that it can reverse from the 1240 afterall it's a strong support, that is the only reason I have mentioned strategy 2 that is to buy on breakout of 1260.
Also my wave count can be modified to have Wave 3 near 1250 and Wave 4 near 1244 and hence the corrective structure is pulling back to Wave 4 of 1 lesser degree. (I have discussed all this in my Youtube video in great detail.)
Yes also the structure can be a nested impulse we never know untill it's complete but I'm not aware of any rule that states Wave 3 and Wave 5 can not be equal, only that they generally are not and the rule is that Wave 3 should not be the shortest so I do not agree with you that it can be called an invalid wave count.
Please specify the source of your information a book name would be nice.
1) Gold is testing trendline breakout which is on 1240.
2) 1240 hold weekly pivot and monthly pivot is on 1236.
3) If you decompose your impulse count, wave 3 and wave 5 are equals, this violate elliott wave rule. Either you need to put w-x-y correction, where w will be 1259 and x can be your support level. But with current structure, it look like we are in nested impulsive count which suggest max retracement on 1240 or max by 1236.
4) 1240 can also providing strong support as it's previous wave 4 support zone in lower time frame.
If I want to trade, I will follow strategy to catch next bull wave in Gold
1) I will wait to see channel breakout which was rightly shown in your chart.
2) I will enter 1/2 position here on market @ 1240 and enter next half on channel breakout
3) Once 1260 break, I will move stoploss to BE.
Sorry to make detail in your post but thought of contributing here rather creating another post. BTW, we are on same boat only few levels we are not matching so thought of making collaboration.
Best of luck!!!