GOLD REVERSAL (D) double top/corrective wave
so this is an update following my Elliot wave analysis posted on the 23rd of November, a lot to get through in this post so ill try to keep it brief. I believe there is a very good chance price is about to reverse based on the signals given below.
1) not hugely significant on its own but worth noting is the reducing length of the Elliot waves as price approaches the currently held psychological level at 2075 signaling a reduction in interest to push prices higher any time soon.
2) the 5th Elliot wave looks to have completed, which often but not always signals that a corrective wave pattern is imminent this is illustrated by the green ABC pattern.
3) As highlighted by the 2 blue circles price has also formed a double top which is made more significant by the fact it appeared pretty much smack bang on the resistance/psychological level at 2075, further signaling a likely reversal in price.
4) The 5th Elliot wave is usually where you will see divergence, unfortunately I cant highlight it on the daily time frame but if you look at the 4hr time frame there is a clear divergence in volume and price lending further weight to my bearish prediction.
its also worth noting that after a "corrective wave" following an Elliot wave the prevailing trend often resumes in this case a bullish trend which is further supported by the current FOMC interest and inflation rate predictions for 2024.
as always I look for ideas and signals that contradict my analysis so as to build the most accurate picture of market conditions and prevent myself and anyone following my advice from losing money, as of right now I haven't seen any strong evidence in favor of a bullish move but if you have then I would love to hear from you.
1) not hugely significant on its own but worth noting is the reducing length of the Elliot waves as price approaches the currently held psychological level at 2075 signaling a reduction in interest to push prices higher any time soon.
2) the 5th Elliot wave looks to have completed, which often but not always signals that a corrective wave pattern is imminent this is illustrated by the green ABC pattern.
3) As highlighted by the 2 blue circles price has also formed a double top which is made more significant by the fact it appeared pretty much smack bang on the resistance/psychological level at 2075, further signaling a likely reversal in price.
4) The 5th Elliot wave is usually where you will see divergence, unfortunately I cant highlight it on the daily time frame but if you look at the 4hr time frame there is a clear divergence in volume and price lending further weight to my bearish prediction.
its also worth noting that after a "corrective wave" following an Elliot wave the prevailing trend often resumes in this case a bullish trend which is further supported by the current FOMC interest and inflation rate predictions for 2024.
as always I look for ideas and signals that contradict my analysis so as to build the most accurate picture of market conditions and prevent myself and anyone following my advice from losing money, as of right now I haven't seen any strong evidence in favor of a bullish move but if you have then I would love to hear from you.
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