- Don't be surprised if you wake up in the morning to see a massive red dildo on the gold chart breaking down the wedge. In my opinion, it's very likely.
- GOLD is absolutely ready for a massive downtrend; it's going to happen very soon, so I hope you are prepared for it!
- We can clearly see a rising wedge on the 4h / daily charts, which is also an ending diagonal wedge from the Elliott Wave perspective. This indicates that the bulls are losing steam.
- The question now is, "How deep is the retracement going to be?" First of all, we should completely wipe out the wedge and also test the unfilled GAP, which is at the 0.618 FIB retracement. There is a parallel channel projection, so this is a good level to profit from your shorts.
- I marked this whole uptrend as an impulse Elliott wave pattern, which suggests that gold can potentially go much higher later next year. This is my bullish scenario, I also have a bearish scenario, that I will post sometimes, maybe in January, so follow me and hit the like!
- Maybe gold will be a good hedge against the upcoming recession. I think the bull market on the dollar is not over yet, and we are going to see new highs on the DXY index.
- Thank you, and have a good one!
