A little upwards movement fits the second Elliott wave count again quite nicely. This preferred wave count expects some more sideways movement, and then a breakout from the range Gold has been contained in now for some weeks.
The preferred Elliott wave count did expect a downwards swing to begin early this week. So far this is mostly what has happened.
All three hourly Elliott wave counts expected upwards movement, which is what happened on Friday.
Last analysis warned Elliott Wave Gold members that gold may continue sideways in the current consolidation for a while yet. Another very small range day moves price essentially sideways on very light volume.
This market is consolidating. Volume will be used to guide as to which direction the breakout is most likely. Stochastics along with support and resistance will be used to indicate when one swing with the consolation ends and the next begins.
Another slightly higher high and higher low sees price move upwards in slow, choppy overlapping movement.
Although price is overall moving higher as has been expected, the choppy overlapping movement is now indicating that this B wave may be a triangle. That possibility is charted and published today for Elliott Wave Gold members.
Members were advised in last Elliott wave analysis that price may move lower in the very short term to test support at a trend line, which was given on hourly charts. Thereafter, price was expected to turn upwards. This is what has happened. Price moved strongly lower, coming very close to the trend line, before turning upwards.
Members were advised that this should be used as an entry opportunity for long positions. These positions should now be profitable.
Volume will be relied upon strongly today to judge the next most likely direction for Gold.
Downwards movement remains above the invalidation points on the daily charts. Price remains within the consolidation zone which it entered back on the 27th of September.
Price does not move in straight lines within consolidations, and Friday’s strong downwards movement is evidence of this fact.
Upwards movement continues as expected for this analysis.
On Balance Volume today gives an important signal that will be given reasonable weight in this analysis.
Upwards movement was expected for both Elliott wave counts. A higher high and a higher low with a green daily candlestick for the session fits expectations.
A small range inside day sees the Elliott wave analysis remain the same.
Volume for GDX offers a clue as to the next direction for price in the short term.
Before upwards movement this week, another test of lows was expected to be most likely about 1,266. This is exactly how the week has started, with a slight new low to 1,266.25 before price turned sharply upwards.
Downwards movement at the end of Friday’s session still remains within the consolidation zone that began back in late September.