Upwards movement continues as expected towards the target. A short term target is now provided.
Upwards movement overall continues towards the target. Today the invalidation point on the hourly Elliott wave chart was invalidated by 1.05 before price turned upwards again.
An inside day completes a doji, as seen on the daily Elliott Wave and Technical Analysis charts.
Price has overcome resistance at 1,236.50. The target on the alternate Elliott wave count has been reached.
This chart was last published on 9th of July showing a breach of an important trend line.
Price is now bouncing up for another test. There is a little room still for a little more upwards movement, if price wants to come up to kiss the trend line.
Again, adding volume makes this simple trend line more powerful. The breach was supported by volume, but now the bounce is not. The volume profile is bearish, adding to confidence that price may now stay below the line.
This analysis is published @ 05:05 a.m. EST.
The bounce has continued as the alternate hourly Elliott wave count expected.
For Friday a bounce was expected to continue to about 1,228 to 1,232. Price bounced exactly as expected to reach a high of 1,231.73.
Price has moved sideways and remains above the invalidation point on the hourly chart. The correction is taking a little longer than expected.
A new high above 1,222.72 invalidated the main hourly Elliott wave count and added confidence to the alternate hourly Elliott wave count. The alternate has some support from volume analysis, and its target remains the same today.
In this video I go through the process of developing an alternate Elliott wave count for Gold, using the MotiveWave analysis platform.
Yesterday’s hourly chart expected a bounce to about 1,218. The high for the session was 1,217.79.
More downwards movement was expected. A lower low and a lower high for Monday fits expectations.
On June 27th I published a daily chart of Gold with a simple trend line. In that post I posed the question: “How Gold behaves at this trend line in the next few days will be a strong indicator. Does the bull run continue or is it over?”
The trend line was breached very clearly. The breach was followed by a typical correction up to resistance. Now price is moving down and away from the trend line.
Adding in simple volume gives this signal more depth. If a breach is supported by volume, then more weight may be given to its significance. The breach of July 3rd did come with increased volume, and volume increased further for the next downwards day of July 5th. After a small bounce to test resistance, further downwards movement for the 7th of July shows again strong support from volume.
Sometimes simple really is best.
This analysis is published @ 11:59 p.m. EST.