Friday, June 20, 2014
Elliott wave analysis of Gold - A larger triangle is building
With the break above resistance at 1,308.00 there can be no more doubt, that a larger triangle is developing. We are currently in the later part of wave e (the last leg of the triangle), but we are not quite there and will have to let the triangle unfold fully before looking for a break out of the triangle.
Wave e of the triangle tend to have a Fibonacci relationship with wave d, so I would look for a move to the 61.8% corrective target at 1,332.15 as the first possible termination-point for wave e, but wave e could move higher towards 1,345 and even 1,356 depending on the strength of wave e.
Short term I will be looking for a correction towards 1,300.55 before the final rally higher towards the first target for wave e at 1,332.15. To indicate that a top is in place a break below support at 1,284.91 is needed and more importantly a break below 1,258.63 confirms the top for a thrust out of the triangle towards the downside for a decline to 1,002 as the ideal downside target.
If you like this post, then you should consider joining the Elliott Wave Surfer Service. Click on the link and see what I have to offer.