GOLD temporary mini-rally before the last ditchHi Traders,
GOLD (now at $1155) is performing the last rally to 1220 before resuming the very last ditch to the area around 1089. The present level of 1155 seems to be a good entry point for a short rally to 1200-1220.
BTW, once the downtrend resumes, it should stop around level 1089 or end a bit lower around the area at $1043-32 that seems to be the absolute minimum and it's considered an unbreakable support.
If this analysis is correct, this would mark the very end of the line for the 38 months downtrend which should be followed soon by a new major uptrend.
TARGETS
first up to:
likely: 1200
possibly: 1220
maybe: 1235
then down to
likely: $1089
possibly: $1043-$1032
ELLIOTT WAVES
The weekly chart displays the formation of wave 5 (in magenta, from March 16, 2014). Wave 5 will be made of 5 waves, three of them already completed and the fourth one in formation.
After wave 4 up, the last wave down will follow (wave 5) which will complete major wave 4 downwards (from Sept 2011).
The daily chart shows that "Wave 3" is completed and it's starting a rally to form wave four (in magenta) to 1200-1220-1231
Wave 5 will then follow to establish the historical low at 1089 or a bit lower to the area 1043-1032.
Cheers. Mario D. Conti
