$XAUUSD Daily Chart. A fake-out not a break-out |#gold #fx #us
Updated
Traders,
Gold’s rally 1046.54 to 1375.12 labelled (i)-(v) confirmed the reversal signature and is indicating the end of the corrective structure from late 2011 with a Double Zig-Zag pattern at 1046.54. This larger pattern is labelled, unfolding as a primary degree impulse, 1(circle), 2(circle) and is getting ready to break to new record highs for gold the next decade when the second corrective wave 2(circle) completes and that’s perfectly correlated with the multi-month correction we are expecting for U.S$.
Gold is going to break above 1375.15 (the previous high) however, that will be a fake out and not a break out, dropping again back in the range. This means that once the upside is completed, this market will undergo a severe percentage corrective decline, proportional to the downswing from the July’ 16 high labelled as (A)-wave, giving a sense of equality of waves (A) and (C). A fib. 61.8% retracement of the 1046.54-1375.15 advance projects down to 1170.00+/- for the following 5-wave sequence labelled as wave (C) completing the Running Flat Pattern 2(circle).
Wave (B) is moving in a very overlapping sequence, a corrective format as a Triple Zig-Zag, thus cannot be considered as an impulsive sequence, but as the second part of a larger corrective structure. Implementing Fib-price ratios and proportions model for this pattern, terminal price targets are highlighted where measurements converge at 1420.00(+/-), creating a “reversal standby signature” where a price rejection could be enough to validate the flat’s pattern second-wave completion.
Trade with Discipline
Best
Gold’s rally 1046.54 to 1375.12 labelled (i)-(v) confirmed the reversal signature and is indicating the end of the corrective structure from late 2011 with a Double Zig-Zag pattern at 1046.54. This larger pattern is labelled, unfolding as a primary degree impulse, 1(circle), 2(circle) and is getting ready to break to new record highs for gold the next decade when the second corrective wave 2(circle) completes and that’s perfectly correlated with the multi-month correction we are expecting for U.S$.
Gold is going to break above 1375.15 (the previous high) however, that will be a fake out and not a break out, dropping again back in the range. This means that once the upside is completed, this market will undergo a severe percentage corrective decline, proportional to the downswing from the July’ 16 high labelled as (A)-wave, giving a sense of equality of waves (A) and (C). A fib. 61.8% retracement of the 1046.54-1375.15 advance projects down to 1170.00+/- for the following 5-wave sequence labelled as wave (C) completing the Running Flat Pattern 2(circle).
Wave (B) is moving in a very overlapping sequence, a corrective format as a Triple Zig-Zag, thus cannot be considered as an impulsive sequence, but as the second part of a larger corrective structure. Implementing Fib-price ratios and proportions model for this pattern, terminal price targets are highlighted where measurements converge at 1420.00(+/-), creating a “reversal standby signature” where a price rejection could be enough to validate the flat’s pattern second-wave completion.
Trade with Discipline
Best
Note
TradingView makes a lot smaller the letter. Better view Note
Just published my second article-analysis on #SeekingAlpha which is about gold, mining stocks and funds "Gold: The Sanest Asset To Put One's Capital In These Days But The Right Timing Is 'Gold' Too". Any comments are more than welcome.seekingalpha.com/article/4150594-gold-sanest-asset-put-ones-capital-days-right-timing-gold
Note
Full collection of articles available at: seekingalpha.com/author/chris-markouizos/articlesNote
We finally did not have the fake-out. However, price dropped and reached the previous target 1165.00. Targets now 1122.00 (+/-) Note
Getting ready for the v. wave Note
Note
Note
Q: Is it possible that we're still in the fake out? Consider the stock market rising again and weighted Yen weakness?A: Absolutely, not so much as a fake out, but as a bigger corrective Zig-Zag completion. Still could have a lot of space to cover to reach that level, possible 1530(+/-) but after that a devastating decline may occur.
Note
Gold's comparative analysis shows weakening ahead. Could we have an ending corrective sequence instead, with a devastating decline on the way? Note
Gold's price hit to the pip the target and had a small rejection. Monitoring.Note
Note
Gold Weekly Chart. Some reverse engineering on price projections with quantitative relativity and correlation studies, indicating a reversal standby. 
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.