Gold is consolidating in an ascending broadening wedge, which is a bearish pattern. It has also trended above the daily Keltner Channel for 7 days, which is quite long. Today I look at two potential buy levels if the trend gets exhausted and Gold pulls back.
Elliott:
We can count a completed wave to the upside. It can be counted as wave (iii) - or as wave (i) of 1, which would be an ultra bullish assumption. In the bearish version we have completed a wave (c), so that a pullback makes sense in all of these counts.
The blue box marks the .382 to .618 retracement levels.
Geometry:
The pitchfork can give us two potential reversal levels: the median, and the .5 fib area (green dotted line), which is also the 1.618 extension of wave a (in green). We can see that the pitchfork and its extensions are respected very well.
Gann:
Support: 1862, 1794
Resistance: 1862, 1930
How I trade it:
The idea is to add long exposure along the lines of the pitchfork. The two entry ideas (green labels) have an optimal risk-reward ratio because they are also in the Fibonacci reversal zone (blue box). The idea is to trade wave (iii) (or wave v alternatively) to the upside.
Elliott:
We can count a completed wave to the upside. It can be counted as wave (iii) - or as wave (i) of 1, which would be an ultra bullish assumption. In the bearish version we have completed a wave (c), so that a pullback makes sense in all of these counts.
The blue box marks the .382 to .618 retracement levels.
Geometry:
The pitchfork can give us two potential reversal levels: the median, and the .5 fib area (green dotted line), which is also the 1.618 extension of wave a (in green). We can see that the pitchfork and its extensions are respected very well.
Gann:
Support: 1862, 1794
Resistance: 1862, 1930
How I trade it:
The idea is to add long exposure along the lines of the pitchfork. The two entry ideas (green labels) have an optimal risk-reward ratio because they are also in the Fibonacci reversal zone (blue box). The idea is to trade wave (iii) (or wave v alternatively) to the upside.