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Chart of the Day: Gold Bullion- 1125 Swing Point

Published 12/31/2000, 07:00 PM
Updated 01/04/2010, 12:33 PM
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Chart of the Day:

Gold Bullion- 1125 Swing Point

Overall View: Looking for a technical pull-back that could target $1030-$1040 per ounce

4 Hour Chart Flows: Short Price Points: 1074, and 1113 Looking for: A Long wave C

Momentum: Gold signaled Long on the 3rd of Nov and has just started to reverse that mode with recent profit taking. 1075 is near-term support, backing any further long tests of 1120.

TheLFB Charting: Gold 4 Hour Chart View 

Elliott Wave: Gold is testing resistance around the 1113 region after the market reversed near to the 76.4% support zone (1085), where wave B was completed. The market is now trading in a higher blue wave C that may reach the 1130-1140 area over the coming days, before a down-trend can continue. The 38.2% Fibonacci retracement zone sits t 1135, where a Long, corrective wave B) may hit the highs, and than push into a lower red wave C).

TheLFB Charting: Gold Daily Chart View 

Daily chart trend: Long. Main price points: 989, and 1226 Looking for: A Short wave IV pull-back

On the daily gold chart, the market reversed powerfully from the 1226 area where a Long black wave III was completed with an extended structure (five red sub-waves). Traders should now be looking for a mid-term Short wave IV reversal that is in progress, which should fall into the 38.2-50% retracement area of the wave III distance over the coming days and weeks.

Wave IV is a corrective wave, and as such we will look for three waves of decline, labeled as red A)-B)-C), before this Short reversal will be complete.

Declining prices in wave IV must not fall below the 989 zone, otherwise the wave count will be invalidated, as wave IV must not trade into the territory of a black wave I.

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