GOLD SELL setup

In my view gold is bearish and sell point is close.
Arguments:
- 4 week trendline is broken.
- divergence in last top(17 jan)
- wave 2(blue) looks like clear abc (5-3-5) zigzag pattern.
- goldusd move is opposite to usdjpy. and in my view usdjpy is clearly bullish.
there may be last little swing up, which should not go beyond 17 jan top.
in anyway selling flag breakout will be a good idea.
also there is a good R/R ratio!
Keep an eye on it!
Good luck!

Note

Before posting an idea I doubted about my wave count.
Today price exceeds 17 jan top level.(a little bit, but it does)
wave 2 can't correct more than 100% of wave 1.
so it looks like abc correction pattern 3-3-5 flat. (wave B can correct more than 100% of wave A)
so, sell setup is still valid, but now it's short-term sell.
we need 5 waves structure to comlete wave C downward move. (wait for 3 swing down, and to corrective swings up) 1st wave inside wave C may be done.
good luck!

Trade closed: stop reached

Trade active

It may still be an active trade.

ABC(blue) flat(3-3-5) pattern should correct 3rd wave(yellow).
Here is full picture.

If wave B(blue) is done, gold should start falling in the area of 38% of 3rd wave (1191).
keep an eye on it!

Note

if it breaks, sell it!

Note

looks like possible ending diagonal

Note

one more scenario for wave (c) - diagonal.

Note

looks like zig-zag pattern.
flag breakout will be a confirmation.
gold may drop well below 1991

Note

possible scenario

Trade active

1991 target is reached
next one is 1174

Trade closed: target reached

Original price target (wave C = 1.618 * wave A = 1180.7) was reached

OleksandrSnitko

Related publications

USDJPY correction pattern is completed. Look for BUY setups!

by OleksandrSnitko

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