In the last few months, gold seems to be following a channel. Patterns in wave theory points to another downwards turn in the market. Looking to buy in around 1315 and sell around 1440. Midlength trade, hoping to close by the end of October.
Bull case
- Last rally pushed above previous high around 1190
- Broke bearish channel set up from April 2013
- Broke out of descending diagonal
Right now sat under divergent weekly stochastic resistance so holding out for a dip and long set up to pull the trigger
Since March 18 2014, FX:XAUUSD is experiencing a down trend corrective structure, and still in this trend.
Since May 05 2015, XAUUSD is going to complete a Cypher Pattern.
Coincidentally, the end of Cypher Pattern and the upper of the Corrective Structure are both around 1190.
Now the price is around 1155 (50% level of Fibonacci, XA)
Buy at 1170 ((61.8% level...
Level to watch: Support 1099.6x, 1087.15, Resistance 1120 and 1149
I am Very Bullish, It will use 1097 to 1100 region as support, for further advance. I am looking at 118.9 to 1120 range and next will be 1140.
Yet do not overjoy for bull, we have much overhead resistant to break out.
XAUUSD or Gold has reached an overbought position. Similar to previous time, as noted by the red circles you can expect a pullback to consolidate. I do expect the uptrend to continue this may be a buying opportunity.
