GOLD (XAU/USD) & SILVER (XAG/USD) – Buy and Sell Levels
XAU/USD & XAG/USD have dropped in value recently but a bounce occurred at crucial levels, on a Bullish Divergence. The rise is unfolding on both precious metals with what appears to be Leading Diagonals.
Of course, when encountering a Leading Diagonal, one would expect a sharp decline before the next wave would occur, therefore, if a drop would occur in a Zig-Zag pattern, then this could pave the way for the trend to possibly continue with a Rally.
As per the previously posted “Fed December Rate Hike – DXY Technicals – Elliott Wave Analysis” article, the USD indeed got trashed and dropped like a rock. In my personal view, the Dollar Index (DXY) is still looking Bearish.
Recently, I was also paying attention to the Mining Vectors, especially the GDX, which is possibly looking Bullish, should break-out of the upper Channel occur. The bounce from the lower Channel trend-line was in my radar, hence the reason why I decided to post the “XAGUSD - 2018 Bullish Outlook” article.
XAU/USD & XAG/USD could possibly overshoot a bit and exceed the upper Leading Diagonal converging lines, typical scenario for this type of Structure.
Minuette (v) black could not occur anymore as XAU is trading below the Channel. Final push up could occur but at these times XAU could be preparing for a significant drop. USD reversal could occur.
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Minuette (iv) and Minuette (i) are overlapping which could only mean that in a Bullish scenario an ending Diagonal is the single solution. If it fails to return into the Channel, red alert.