Short

Time for a bull trend Pause

Updated

This is an early technical analysis on gold. Please note that I did not get bear confirmation yet. However I see trend getting weaking near resistance zones. Probably time for liquidity hunt before resume trend. Very quite week in financial calendar which must favors bears. Of course expect a bullish close in Monthly. Let me explain the method I used to fine targets

This chart showcasing following indicators

Fib extension
Fib retracement
Stochastic
Moving averages (hidden)

Analytical Method Elliot wave Simple Rules

Wave 1, is very steep having an impulse text book count
Wave 2, is zig zag irregular correction
Wave 3, is an extensive wave with a combination of Elliot wave pattern. Which is very complex and shoot out of compression. This wave expected to finish between 1.273 -1.618 extension.
Wave 4, Here is the argument rise which has to be a triangle or deeper zigzag. I didnot find that yet for best fit
wave 5, No comment (Controversial called for argument) :) Found a harmonic bearish butterfly in hourly chart which is typical structure of wave 5 in Elliot wave

So I labeled as per Fib Extension figures which shows a correction is due below 1860 Well this can be a deeper wave 4. I would like to label such correction as zigzag combination.

The conclusion : I am shorting gold next week from the zone around 1930-44 target 1907 or deeper.

Trade active

Here we go..
1. Set the trade.
2. Scalped in between
3. Taking a Swing trade

1st target 1925

VRShaiju

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