Gold missed Zigzag; now a double zigzag formation possibility?
To me this seems like a possible
2nd corrective zig zag wave;
where B was a perfect 61.8
retracement which set up for a
zigzag AB=CD pattern, but on
friday price reversed on C point;
which disallowed the zig zag
to complete.
Whenever a zig zag target misses;
there is always a possibility of a
double zigzag to be formed hence
I am drawing this chart with an
expectation to see a bullish X leg
which should end somewhere in the
vicinity/range of B; after which a
double Zig zag pattern should resume
and stay in line with the current bearish view.
However if the top of B gets taken
out or if we don't see an A wave below
C(w) then this count is invalidated and
it could be safe to assume that a
bullish wave has begun.
An alternate view is seen in the red arrow
which is based on the assumption that
1312 resistance will not be taken out.
2nd corrective zig zag wave;
where B was a perfect 61.8
retracement which set up for a
zigzag AB=CD pattern, but on
friday price reversed on C point;
which disallowed the zig zag
to complete.
Whenever a zig zag target misses;
there is always a possibility of a
double zigzag to be formed hence
I am drawing this chart with an
expectation to see a bullish X leg
which should end somewhere in the
vicinity/range of B; after which a
double Zig zag pattern should resume
and stay in line with the current bearish view.
However if the top of B gets taken
out or if we don't see an A wave below
C(w) then this count is invalidated and
it could be safe to assume that a
bullish wave has begun.
An alternate view is seen in the red arrow
which is based on the assumption that
1312 resistance will not be taken out.
