The channel on the daily chart was breached indicating price should move lower, which it has.
A bounce was expected to end about 1,281. The high for Wednesday’s session fell just 1.94 short of this target to reach 1,279.06. Strong downwards movement was expected following the bounce.
Technical analysis chart of Gold with Volume and On Balance Volume indicators, and support and resistance lines, may give guidance as to the direction Gold may take after FED Interest rate decision.
Click chart to enlarge. Chart courtesy of StockCharts.com.
The recent fall in price over the last three days does not have support from volume and this suggests a bounce should be expected here or very soon. Additionally, there is strong, bullish support for Gold’s price at about 1,260. These support the idea of upwards movement after the FED Interest rate decision.
However, the latest and now most important signal comes from On Balance Volume breaking below support. This is bearish.
Given that a technical analysis approach would expect Gold to move mostly in the direction of least resistance and away from greatest support, the expectation is for Gold to breakout upwards. But because of On Balance Volume’s bearish signal, any upside movement is expected to be relatively short lived.
Also, On Balance Volume supports my current Elliott wave count.
This analysis is published @ 03:30 a.m. EST.
Downwards movement continues a little lower, which was not what was expected for Tuesday’s session.
Since last analysis downwards movement continues as expected. Trading advice on how to protect short positions is given for members this week.
A slight new low followed by some sideways movement fits mostly with expectations for the hourly Elliott wave count.
The invalidation point on the daily chart was breached indicating a trend change.
Again, price remained within the channel on the first daily chart. There is as yet no confirmation of a trend change.
Downwards movement remained just above the invalidation point on the daily chart. The target is adjusted.
It is time to step back and take another look at the bigger picture as cycle wave b becomes a little clearer.
Upwards movement has invalidated the first weekly chart. With some adjustment, the triangle idea remains valid.
Downwards movement continues as the Elliott wave analysis overall expects.
Price moved sideways and then higher, which was what was expected from the Elliott wave count.