Down days for gold

Elliott Wave Outlook for gold and crude

Crude

Crude oil (NYMEX:CLQ14) fell to a new low at the start of the week, slightly beneath 100 psychological level before market turned up again.

This rally was expected because of a completed five wave decline, but now recovery is already at 61.8% compared to previous fall which means that new turning point can be again very close. Ideally a sharp recovery from the low is corrective wave 2 so weakness could follow, but we definitely need to see an impulsive fall on the intraday basis back beneath 101.00 to confirm a resumption of a downtrend.

 


Crude oil 4-hour Elliott Wave Analysis

 

Gold 

We are expecting weaker gold (COMEX:GCQ14) price after a five wave drop from $1,345 that we labeled as wave a), part of a minimum three-wave decline in wave (b) that can reach levels around $1,280 in the next few days. Notice that in recent sessions market made nice rally up to $1,313-$1,325 area; it was more than 50% which can be enough, so downtrend may resume soon. $1,345 is now invalidation level; as long as it will hold we are looking down.



Gold 4-hour Elliott Wave Analysis

 

 

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/

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