Gold Bull Still Rising

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The rising gold market has been trading in Elliott Wave and Fibonacci patterns for years, though it’s been murky every once and a while. There has been some volatility recently as investors positioned for the year-end. Now it looks like Gold should be poised to power higher near term, and I’m looking for a completion to a 5-wave rally that began from about $1,040 per ounce in February.

Over the past several weeks, I’ve seen a clear Fibonacci trading day relationship on Gold’s swings from pivot highs to pivot lows. Over the past five weeks the pattern has been eight days of correction, 13 days of rally, and eight days of correction. Below is a chart outlining these crowd behavioral-based patterns. You can see the clear relationships, confirmed by the stochastic indicators at the tops and bottoms:

Based on the recent patterns, I believe we completed a minor wave 3 from the February bottom at $1,424 a little over five weeks ago, and had a shallow period of eight days to complete a wave 4 to $1,330. Now, we are in the final 5th wave up pattern to complete an entire 5 wave move from February. In the near term I’m expecting a pretty strong rally from this recent $1,365 area to at least $1,480 per ounce, and eventually a good shot at completing the structure at $1,525 ranges. Short term, we should begin a wave 3 up here, followed by a 4th wave correction, and then a final and terminal 5th wave. Below is a multi- month weekly chart view of where I see us heading and where we’ve been.

Recently, I completed a brief E-book on Behavioral-Based investing and trading, and it is free for new subscribers to TMTF or ATP services. If you’d like to stay updated, you can subscribe or otherwise sign up for weekly reports at www.MarketTrendForecast.com.


Article printed from InvestorPlace Media, https://investorplace.com/2010/12/gold-bull-still-rising/.

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