Gold to take a hike - EW analysis.

6 thg 2, 2015

Gold has been bullish from long term lows. After reaching the 1300 target impulsively, it has now corrected correctively. This count outlines and flat abc that has unfolded, a 3-3-5. In the middle, a precious clue that gives us a strong buy signal in this area that rarely fails. The EW triangle is a pattern that occurs in wave B or wave IV position only, in other words it always occurs before a reversal of one larger fractal. Triangles always resolve violently - this one no exception. As we can conclude with high confidence this is a triangle, we can assume that a rally from nearby levels to at least 1280 can be expected. I think that the trend will continue breaking new highs from here above 1300 simply because of the quality form of this flat correction.