Elliott Wave Technician: Gold’s Complex Corrective Pattern Includes Something Bearish

We are ready for completion to happen very soon, but there are a few things to consider…

by Captain Ewave of CaptainEwave

Captain Ewave

S&P500, Gold, & Silver: Trends & Trades

Email: [email protected]newave.com

Website: www.captainewave.com

Nov 23, 2019

GOLD: 

Short Term Update

Wave *iv* is still underway as shown on our daily chart. We have a complex corrective pattern, and that includes a bearish triangle.

We are now ready for its completion to happen very soon.

We are now falling in wave $c$ of *iv*, with the current low of 1446.30 now reaching our 38.2% retracement level for all of wave $iv$.

We also need to consider the possibility that wave *iii* is going to extend and in this case wave !i! of *iii* ended at 1566.20 and we are now falling in wave !ii!. If this is happening then gold is going to fall further than our 38.2% retracement level before all of wave !ii! ends.

For now we are assuming that the current drop is wave *iv*, and in this case it should be ending very soon.

 

Our retracement levels for all of wave *iv* are:

23.6% = 1495.70;

38.2% = 1451.30

Wave *v* and all of wave .iii. have an initial target of 1704.40.

Trading Recommendation: Go Long gold. Use puts as stops.

 

Active Positions: We are long, with puts as stops!

Short Term Update:

Within our extending wave .iii. rally, it looks like wave ^ii^ is still underway in a complex corrective pattern, although it could now be complete at the 16.61 low.

The pattern included a bearish triangle, like gold.

We are now well within our retracement levels for all of wave ^ii^:

50% = 17.01;

61.8% = 16.36.

Once wave ^ii^ is now complete we should expect a very sharp rally in wave ^iii^. We will provide our initial projections for the end of wave ^iii^, when we are sure that all of wave ^ii^ is complete.

Trading Recommendation: Long silver. Use a put as a stop.

 

Active Positions: We are long, with puts as stops!

S&P500:

Short Term Update:

On the 120 Min SP500 Chart we appear to have an ending diagonal triangle formation, which for the bearish count could be indicating that all of wave (b) is nearing completion.

We are clinging just above the lower trendline of this ending diagonal formation, and a sharply break lower appears likely.  

 

The SP500 has reached all time new highs, but on our Daily and 120 Min SP500 Charts we have shown a modified alternate bearish count that is suggesting that wave -b- has become a double 3 corrective wave pattern.

For now, our current bullish is still (barely) preferred. Our subdividing wave (iii) that has initial projection of:

(iii) = 1.618(i) = 3711.83.

Regardless, we continue to hold our short position!

Trading Recommendation: Short at 2950.0, with a call as a stop.

 

Active Positions: Short at 2950.00, with a call as stop!  

Free Offer For Website Readers: Please send me an Email to [email protected] and I’ll send you our shocking CDNX “C Wave To The Sky” report, together with a key update on the GDX daily chart!

Thank-you!

Captain Ewave & Crew

Email: [email protected]

Website: www.captainewave.com

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