$XAU Hit Target @ 1216.67; Limited Rally Into 5-0 Patt. | $Gold

FX:XAUUSD   Gold Spot / U.S. Dollar

A quick tech-note here on $XAUUSD:

1 - Hit 1226.67 target and reversed - Although I'd expect consolidation to be the next time-consuming event, a 5-0 pattern is lurking above, demanding completion at its defining 50% level from recent down-swing, or at 1284.99 - High probability target.

2 - Prop Pattern may receive validation as well, pending target reach at TG-1 = 1301 (moderate probability)

3 - Low probability target rests at 1321.71


The initial analysis called for a reversal at a higher level based on a Shark . This secondary target allowed that same Shark to extend its BC leg to complete on a predictive/forecasting model that defined a slightly lower potential reversal mark than would be defined by target alone.

Expected rally is now driven by target completion of Shark's acolyte: The 5-0 Pattern, although loftier targets remain from a prior analysis that say a Wolfe Wave as the main driver of a deeper reversal. While 5-0 may gain validation, these higher targets remain valid as defined by predictive/forecasting model.

However, in the context of a trend preservation, these loftier targets should also be considered as strong bearish entrenchments, likely to cap any further advance. Indeed, predictive/forecasting model remains strongly bearish across short and medium terms.


David Alcindor
Predictive Analysis & Forecasting
Denver, Colorado - USA

Twitter: @4xForecaster


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.