Gold had a "Blow off Top" just above serious resistance. Then came the requisite fast drop to trap bulls up above. Now approaching some support zones for possible bounce.
The velocity of this drop indicates another leg down is likely. But it is possible that correction is DONE (abc instead of 123). So a long scalp from here towards the 1500 is worth considering.
The EW waves plotted are GUESSES, but the Zones are SOLID. Expect a reaction at each zone, and observe closely for clues. And of course, be wary of Trump tweets or other news chaos.
Previous Gold Analysis (click): <= Still Plausible <= Awesome Short <= Just in Time <= Caught the Jump <= To the Penny <= To the Penny <= 9 mos ago
Of course, I have had total FAILS on some ideas too, not going to pretend. But all of my plots show PRECISE entries, TIGHT stops, and EXACT targets. Precision is the way of the Fib. Almost every turn happens at a Fib Line.
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Bounce did not make it to the plotted targets but I was afraid of that when the line at 1494.150 started acting as strong resistance
Zooming in and extending the fib lines from Red fib of last drop, we see the 5.618 was the key Where as I had thought the 5.236 would do it. At this point I am assuming that a wave is complete and we may start a bounce, or at least consolidate between the 4.236 and 5.236 for a while
Zooming in some more and looking at the bounce Looks like the 2.236 at $1487.767 will be the key price to watch for a possible significant bounce. The bounce from 2.618 ran out of energy before tapping the 4.236, so weakness still exists.
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slammed into the 2.236 and even pierced it wee bit but it was definitely noticed. Thus all these fib lines are still valid, so if it drops below the 2.236, I will look at the 1.618 for strong bounce.
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wow, our little bounce is hinting of the 2.236 having been bottom
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Nice Rhythm. Bulls held the 2.236 as mentioned, and now they are trying to establish the 3.236 as new support The key is to break the 4.236 above, failed several attempts.
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Bulls unable to hold the 3.236, and the price action proves the theory that "each time a support is hit, it gets weaker" Now to watch the behavior at Band 2 below.
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I have posted a separate Idea to observe behavior around a very important fib series which indicates likely end of wave
Hey buddy, thank you again for your charts. I did notice usually that your zones are very solid in gold and the price u turns at some point in any of those zones. They are great places to place a buy or sell. By the way, if i place a stop at the zone, where would you recommend the SL? @EuroMotif
EuroMotif
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@abdullahfarhan7, Hi there.
Indeed, the zones almost always react.
I never know WHICH zone will cause the U-turn, but I am confident it will be at ONE of the zones.
And there are some general rules/commonalities that help narrow down the fibs of real interest.
As for SL, I like to rail mine one "Band" behind the price (a Band as in 2 fib lines), of the smallest timeframe Fib that the price seems to be following.
So if the price is past a "3.618" then my stop will be just below the "2.618", with the "3.236" sitting in between as an extra barrier.
abdullahfarhan7
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@EuroMotif, Interesting logic. I would've thought you would put the SL right after a certain zone ( two fibs line zone like where you marked number 4 for example) to give price time to reverse. Ur SL is kinda tighter than that.
abdullahfarhan7
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@abdullahfarhan7, Can you also please share with me what general rules/commonalities i should be aware of to pinpoint the best possible fib zone entry? thanks
jglouw24
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Always look forward to your charts and as always, you never let me down. Thank you
EuroMotif
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@jglouw24, wow, thank you so much! and yw, hope they help.
YIQI
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i read every gold analysis
EuroMotif
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@YIQI, Hi, you are welcome and thank YOU for your support and vigilance.