Gold Targets

The original commodity is attracting well deserved attention lately, including my own.
Basically it was the 50% pullback and subsequent solid support as it was retested.


Anyway well into a rip up through previous highs, the question arises; where to?



 In the above 6 mo. chart pls note that c= .382 of a, very likely completing a 4th wave consolidation
in a little triangle.  That formation suggests a market with a lot of pent up buying interest. They can't wait.

Looking at the longer term chart, the first fib resistance .236, and the trend lines on a channel dating back to 2013, are both being taking out now.

So if we are expecting a bog standard 5th wave the general rule is 5=1 OR .618 of waves 1 through 3.
It ain't going to be 5=1.

So  5= .618 of 1 thru 3 at 1330.
Seems a little tepid considering the circumstances (world wide central bank impotence) and obvious pent up buying interest.

5 = 1 thru 3 at 1417, slightly exceeding the .382 retrace.
5= 1.382 x waves 1 thru 3 at 1492, that is also a 50% retrace.

The look of this next break up, it's volume O/I and relative strength will indicate what to expect of wave 1 up.

Now just playing around in the realm of what if. What if we get 1492 and then a wave 2 pullback of 50% ? If  that was followed by another wave up that was 1.618 of 1, you would be challenging the old highs around 1828. Again just playing around here.














Comments

Popular posts from this blog

WTI Update- a 4 Handle Future?

Biden Climate Plan and Global GDP

Crude Oil Update