Hello traders,
Gold has continued a consolidation pattern for a number of weeks which is quite common in commodities; commodities never go straight-up forever.
On the technical front, according to my work, Wave 3 halted in Gold just over the mid-point between 1.618 and 2.618 - this is a very common region for Wave 3s to end, not only in Gold but also in the SP500. Afterwards, we entered a prolonged ABCDE triangle and formed a hammer from an initial sharp Wave 4 decline to/off of 1865.
Even though I hate to say the word "impossible" in the markets, theoretically, it is near "technically" impossible for Gold to drop significantly from here (i.e. below 1865), as the Gold market has not undergone a Wave 5. WXY/WXYXZ consolidation patterns are common roughly mid-point in Wave 3s which occurred from April to July and this is yet another sign that Wave 3 topped where I have shown.
In general, I would except a final leg up in Gold and Silver in particular, with the Dow and SP500 tagging along. Tech on the otherhand has likely topped (as per many of my recent 'ideas'), and will likely be halted in the upper 11000s or around 12000 off a bounce.
Many people are probably expecting Gold to rise or continue to rise in November near the election, however, this is likely too obvious and the "boogie-man" scenario of Biden winning having a big impact on the market is likely overblown. I see a likely scenario of Gold correcting from my TPs just after the election as likely, which is shown in my chart.
--
Watch for Powell's final FOMC before the election (coming this Wednesday) to dictate the overall trend in Gold, Silver, the Dow and the SPX.
-zSplit
Gold has continued a consolidation pattern for a number of weeks which is quite common in commodities; commodities never go straight-up forever.
On the technical front, according to my work, Wave 3 halted in Gold just over the mid-point between 1.618 and 2.618 - this is a very common region for Wave 3s to end, not only in Gold but also in the SP500. Afterwards, we entered a prolonged ABCDE triangle and formed a hammer from an initial sharp Wave 4 decline to/off of 1865.
Even though I hate to say the word "impossible" in the markets, theoretically, it is near "technically" impossible for Gold to drop significantly from here (i.e. below 1865), as the Gold market has not undergone a Wave 5. WXY/WXYXZ consolidation patterns are common roughly mid-point in Wave 3s which occurred from April to July and this is yet another sign that Wave 3 topped where I have shown.
In general, I would except a final leg up in Gold and Silver in particular, with the Dow and SP500 tagging along. Tech on the otherhand has likely topped (as per many of my recent 'ideas'), and will likely be halted in the upper 11000s or around 12000 off a bounce.
Many people are probably expecting Gold to rise or continue to rise in November near the election, however, this is likely too obvious and the "boogie-man" scenario of Biden winning having a big impact on the market is likely overblown. I see a likely scenario of Gold correcting from my TPs just after the election as likely, which is shown in my chart.
--
Watch for Powell's final FOMC before the election (coming this Wednesday) to dictate the overall trend in Gold, Silver, the Dow and the SPX.
-zSplit
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