We are looking at Gold on the Daily chart to see where this market is in the Elliott Wave pattern.
First, we examine the tallest peak on the PROFITUNITY AO which we have labeled as Wave 3/3 in August of 2020. Breaking down that leg of the impulse wave on the 60 minute chart shows there is a divergence in the wave and a few of the PROFITUNITY Bearish Divergent Wiseman sell signals are present and on the Daily chart.
After we completed the Wave 3 of Wave 5 on the Daily chart a larger degree Wave 4 correction started downward. There is an A,B,C wave which we think ended around March of 2021. Next, we see the 1st leg of the Wave 5 impulse wave UP ending at the beginning of June 2021. Following a Wave 1 of Wave 5 up will be a strong Wave 2 movement down which we can currently see on this chart.
So the questions is where will it go?
If we put Fibonacci retracement on the Wave 3 up it gives us a good idea where this market may retrace to during the corrective waves.
Wave 2’s usually retrace faster in time and price, which is looking to be accurate to far in this downward move. We also need to consider the alternative here- which is that we had an extended A Wave down, B ended in June, which would mean we are now in C Wave down. This can be seen better on the weekly chart. We will cover this is the next update.
Both scenarios have the market going down,- however if we are in the C wave we can expect to see lows beyond the $1610 area.
It if is a Wave 2 then it should not retrace past the low of March 31st @ $1679. Weekly charts show that Gold has long corrective waves so be aware that anything is possible here!
In the future the Wave 5 will have to have higher prices than the last impulse wave high. So, in time I believe we will see Gold well over $2K like my father Bill Williams predicted!
For now, we ride the Wave 2 down and will check back next week for updates on this Gold chart…
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