I was looking for ending structures in line with that idea (linked below), this may be a possibility: possible expanding wedge/ (leading) diagonal.
I have published about a similar structure on DOW, short-term both are moving in opposite directions but longterm they are both up since beginning of the year. If both are forming the same structure then gold may be just lagging DOW because DOW may have completed wave 4 of EED on Friday (confirmation this coming week) and gold may now be on the way to completing wave 3... Just a thought, we'll see what happens...
This one here however is still only in its early stages so we'll have to wait and see how it develops. If it develops in a way similar to what can be expected of such a structure, with confluence from either a test of the and/or fib levels AND if we can possibly get some good good divergence on any of the preferred momentum indicators...., well then we might have a great high probability short trade opportunity coming up!!
The way this has developed so far it looks like waves 1 and 3 are developing as 5-wave structures (not confirmed yet, wave 3 not complete!) and wave 2 was a 3-wave structure. That means that if it continues like this then wave 4 is more likely to be a 3-wave structure and wave 5 is more likely to complete as a 5-wave structure. This would then be in line with what is often seen in leading diagonals according to theory. In that case we should consider the whole rally from the lows of december last year likely to be a wave 1, in which case we should expect a sharp decline after the structure completes; with a considerable down retracement, at least 38.2% but likely more (commonly 61.8%). But as said we're still in the early stages so let's wait-and-see what happens!
I will surely be keeping this in mind when looking for smaller timeframe (hourly) setups!
Oh, and the vertical line is the date of the 'Brexit' referendum!!
I'm keeping that in mind also, could be a good catalyst for the next big move...