KVE
Short

XAU/USD: Expanding wedge/diagonal on Gold?

FX:XAUUSD   Gold / U.S. Dollar
591 2 14
Possible weekly Cypher completion with trendline and possible fib confluence in the 1350-1400 zone.

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 trendline 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 Elliott wave 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...
Comment: The weekly cypher can be found here:
XAU/USD: Weekly Gold Cypher and/or trendline to short?
KVE PRO arif_awan
Good level to short!
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