Assethandler

Ending diagonal wave 5 main, corrective sub-wave 4.

Short
OANDA:XAUUSD   Gold Spot / U.S. Dollar
Looking at the weekly its clear that the trend is bullish,the market continues forming higher highs & lower highs but with a clear wave count its always safe to monitor until you see the actual count.At first i was expecting a triangle for wave X but that flew right out of the window when the main wave 4 completed & presented a running flat pattern as a wave 4.Looking at the current structure & count of waves all waves in that expanded channel are moving in 3"s,which is a clear indication that we have a ending diagonal in our hands & its forming at a wave 5,all rules are being respected.Now i'm waiting to see how deep wave 4 will push,once it overlaps the extreme high of wave 1,i'll be glued to my screen & waiting for confirms to go long that being said i'm waiting for shorts right now & the only way i'll even entertain the idea of selling is if we break below that minor bullish trend line & go for a retest at the 1439.445 level,then i'll look for theme patterns & candlestick formations on the 1H time frame since i'm expecting another 3 waves move below. Fib levels are also going to play a critical role,usually wave 4 retraces between 38-61.8% & doesn't go below wave 1 highs in an impulse pattern but since its a diagonal we might see price move towards the 78% fib level or between the golden pocket ratio.
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