Tuesday, December 3, 2013

Gold - Heading Towards Upper Channel Line


Gold (CMP: $1251.9) -  is showing bearish outlook for the short term and bullish outlook for the medium term perspective.

Gold is in the progress of  major “wave b/x” , “wave a/w” has ended at $1180 on june,28.

The major “wave b/x” is three wave structure which can be “Flat pattern or Double Combination pattern”. Intermediate “wave b/x” has retraced more than 61.8% retracement level of intermediate “wave a/w”. Now wave b/x could completed around $1200 - $1180 levels which is sub-divided into (a-b-c) zig zag pattern. After the completion of intermediate “wave b/x” then “wave c/y” could rise toward $1433 (Top of minor “wave a/w”) to $1500 or more.

In the short term the price is moving within the smaller downward sloping channel setup (Marked dotted blue line) which is a bearish sign for gold. The price is forming a lower top lower bottom on the weekly chart, which adds move strength to our bearish stance.  In addition weekly oscillators are placed in favor of bears.


Conclusion: Gold could fall towards $1200 - $1180 levels. After tested $1200 - $1180 levels, it will head towards $1433 – $1500 in medium term perspective. 

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