Gold Set Up For A Rally | $XAU $GLD $Gold $USD #forex
Traders,
On a pure technical basis, we have already demonstrated yesterday how #ES / $SPX was setting up for a fall, and falling it did, indeed - That was based on a 5-prime positioning, the most commonly level of aggressive counter-trend event.
Here, the $XAU is giving us a mirrored situation, except that the technicals are coming into alignment to see price soar. This is not a comment on whether gold is over or under-valued, simply that the chart is preparing to squeeze a few shorts out - A similar situation occurred with the Nikkei when it soared out of the same geometric construtiob - See link here:
.
WOLFE WAVE PATTERN & DISCREET GEOMETRIES:
I will assume that you are familiar with the pattern. I have dedicated a lot of time over the past weeks discussing this pattern, and it is now giving us a live application, once again after its terrific performance yesterday on the e-Mini S&P500.
Here, price has been pushed to the taut side of the triangle, at a level that would usually require an alignment along Point-3 to Point-5' using the parallel from the 2-4 Line. While the angle of the 2-4 Line is preserved to support the last three lows after price broke below its 1-3-5 Line, the alignment remains amiss at this point, and there is no clear way to bring it into alignment except forcing a deep, sudden decline to carve out a lower low at 5'.
(for those who have read the instructions and my added observations on the Wolfe Waves pattern, do you now see the "Tunneling"?)
HOW LOW CAN IT GO?
Turns out that the predictive/forecasting model has defined a narrow range towards which further decline is expected. That range is defined as:
1 - TG-1a = 1255.73
and
2 - TG-1b = 1255.16
OVERALL:
A misalignment is calling any imminent rally into question. Compounded with the predictive/forecasting model, added downward force will probably push the pedal to this metal to find its true floor.
Cheers,
David Alcindor
Predictive Analysis & Forecasting
Denver, Colorado - USA
-------------------
Twitter: @4xForecaster
-------------------
On a pure technical basis, we have already demonstrated yesterday how #ES / $SPX was setting up for a fall, and falling it did, indeed - That was based on a 5-prime positioning, the most commonly level of aggressive counter-trend event.
Here, the $XAU is giving us a mirrored situation, except that the technicals are coming into alignment to see price soar. This is not a comment on whether gold is over or under-valued, simply that the chart is preparing to squeeze a few shorts out - A similar situation occurred with the Nikkei when it soared out of the same geometric construtiob - See link here:
WOLFE WAVE PATTERN & DISCREET GEOMETRIES:
I will assume that you are familiar with the pattern. I have dedicated a lot of time over the past weeks discussing this pattern, and it is now giving us a live application, once again after its terrific performance yesterday on the e-Mini S&P500.
Here, price has been pushed to the taut side of the triangle, at a level that would usually require an alignment along Point-3 to Point-5' using the parallel from the 2-4 Line. While the angle of the 2-4 Line is preserved to support the last three lows after price broke below its 1-3-5 Line, the alignment remains amiss at this point, and there is no clear way to bring it into alignment except forcing a deep, sudden decline to carve out a lower low at 5'.
(for those who have read the instructions and my added observations on the Wolfe Waves pattern, do you now see the "Tunneling"?)
HOW LOW CAN IT GO?
Turns out that the predictive/forecasting model has defined a narrow range towards which further decline is expected. That range is defined as:
1 - TG-1a = 1255.73
and
2 - TG-1b = 1255.16
OVERALL:
A misalignment is calling any imminent rally into question. Compounded with the predictive/forecasting model, added downward force will probably push the pedal to this metal to find its true floor.
Cheers,
David Alcindor
Predictive Analysis & Forecasting
Denver, Colorado - USA
-------------------
Twitter: @4xForecaster
-------------------
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