Previously I was looking for the termination of w. i circle to complete at 1423.1 (see:
http://elliottwavelive.blogspot.com/2010/12/market-pulse_29.html ). Gold's rally has stalled at 1424.7 that is confirmed by a completed five wave advance ( see 240 min. chart). Combined with time analysis, a high probability exists that w.i circle has ended. For example, previous cycle highs measured 14 and 12 bars respectively. The most recent swing h-h cycle was 11 bars , with an average h-h of 12.33 bars since 10/22/2010.
With w.i circle of the final w. 5 complete, I am looking lower in a corrective manner that should last about 5-7 trading days and carries price to 1392.4 -1398.6. I'll be watching this correction intently as the termination of w. ii circle offers an excellent opportunity to enter the market before the final push to 1500.
Best of Trading
Although I called the top of the most recent swing, the decline has been deeper than I expected and isn't orderly, i.e. price has almost reached the point of the origin of w.i (1372.4. According to EWT, w.ii can't exceed the origin of w.i. If this occurs, the wave count is incorrect. Also the time that it took to reach this price point was fast. When price travels far in a short duration it is usually an indication of impulsive price action. Are we setting up for a deeper correction? We'll have to see what develops.
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