Update:Project $1550 Gold Hints a Bottom is Near (But We're Nervous)
$1247 gets you $1220, but above $1214 and the $1550 target is still in play
It should be noted that we are concerned that Gold under $1247 gets us to $1220. But the wave count we have been following says that a sell-off above $1214 still keep it intact. It is just hard for us to buy dips on short term trades. We’d rather buy a bounce off the lows. But as long as Gold remains above $1214 both the wave count and our own feel corroborate each other. It is just a matter of a person’s time frame.
The only other thing we can add to the excellent analysis below is that there is now a double bottom on the 30 minute chart. That is something we like to buy with a stop out right below that level for a bounce swing trade in a bearish mindset. it would be nice if what we see as a swing trade is in fact really a bottom as Enda says it could be.- Fay Dress writing for SKG
GOLD bullish at 3 degrees of trend
My Bias: Long towards 1550
Wave Structure: ZigZag correction to the upside.
Long term wave count: Topping in wave (B) at 1550
Important risk events: USD: Existing Home Sales, Crude Oil Inventories.
Downside momentum in GOLD has now flatlined after todays sideways action.
Wave ‘ii’ brown is now likely complete at the lows of the day of 1241.23.
Remember this market has now completed a rally and decline to higher lows at three degrees of trend over the last six months.
I believe we are now on the cusp of a serious acceleration higher in the GOLD price.
The momentum situation is very bullish again on all three charts.
And this setup coupled with the bullish wave count
should make even the most skeptical onlooker sit up and take notice.
Wave ‘iii’ brown will begin with a break of 1259.09 and a correction to a higher low.
I have shown that possible rise as waves ‘1’ and ‘2’ pink.
Look for signs of a turn higher,
And an Elliott wave buy signal off the lows.
More analysis at Bullwaves.org