A quick note on this chart between Gold and Silver . Last October 10th, 2013 , I offered a directional idea based on the completion of a pattern of moderate/high reliability, called the "Kiss Of Death ("KoD").
As the pattern play out quite well, so did price action, as it is now ever closer to the targets defined at the time as well, namely:
1 - TG-3 = 77.75 - 10 OCT 013. Targets #1 and 2 were it as per the two remaining yellow lines @ 50.80 and 503.98.
2 - TG-Hi = 80.29 - 02 MAR 2014, defined later on as low-probability.
In the Forex context, I would keep an eye on Gold-sensitive currencies, such as AUD, CAD and CHF, as well as NZD, which are positively correlated to Gold . So, a decline in this chart should alert the Forex trader to the possibility of such throughout effect.
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Structural high @ 67.47 has been breached, as price continued its forecast rallying towards the 77.75 and 80.29 targets - Note that 77.75 was defined back on October 10th, 2013, and has continued its approach despite a significant, near abysmal decline.
Note also that the chart expresses a relative value, that of $XAU against that of $XAG. Therefore, a rally in price suggests that $XAU would either rally faster than $XAG or simply fall slower than $XAG. As both commodities are coming under bearish pressures, this relative strength concept is worth keeping in mind.
Predictive Analysis & Forecasting
Thank you for keeping an eye out!
$XAU vs $XAG nears target expressed in their relative strength:
via @tradingview | $XAUUSD $XAGUSD $Gold $SLV
I would need to get back to my computer and crunch the numbers to provide a finer estimate as to where the likely level of retracement should be.
The GW pattern has three levels of repulsion. The chart only shows the two closest. However, this is a WEEKLY chart, so even a small slippage in target can be too much to bear for most traders.
I will be away from my regular computer. Feel free to remind me later on tomorrow about posting a fresh chart on this relative strength. I will post one as soon as practically possible.