Today’s 8.76 percent rally of Gold may conclude the advance of Intermediate-degree wave (A), which started in early-December. The strong rally day should be the last portion of a Minor-degree impulsive wave 5.
Accordance with this adjusted wave count in daily frame, the following correction in wave (B) will develop soon to a partial retracement level (by technically 50% at 1204$).
Medium-term Uptrend :
Gold is concluding the week with a strong rally day, today!
The countertrend rally (in a five-wave structure) that started in early-December, should be the first part of processing of correcting up in the Primary wave ((B)). Subsequently, Intermediate wave (A) will be corrected soon in following wave (B) (potentially to the Fibo 0.50 retracement level around 1200$).
1213.2! the target that pointed well on an excellent trading setup for short position.
After extending wave ((iii)) in its fifth-wave down, it’s expected to correct in wave ((iv)) to a partial retracement of the decline now.
An Excellent Setup :
Gold is continuing its decline well, toward the target at 1213.2.
As noted in the prior posts, a corrected leading diagonal (to the downside) after an uptrend which resulted in an ending diagonal(of one larger degree), could suggest an excellent setup for short position. The ratio is here almost 10! see on the chart below…
Extending Down :
The market selloff accelerated down in an extending third-wave of Minor-degree wave A.
The ultimate target ( for wave ((iii)) ) still remains at 1213.2, where the Minute-degree third wave will achieve the 1.618 times of the length of diagonal as wave ((i)).
Correcting Down :
The market selloff has accelerated down, as anticipated. The decline of Minute-degree wave ((iii)) would be extending in its third wave now.
The expected target remains intact at 1213.2, where the wave ((iii)) will achieve the 1.618 times of the length of diagonal as wave ((i)).
Correcting Down :
Gold should have completed the Minute-degree correction in wave ((ii)), on the Fibo 0.618 retracement level. A corrected leading diagonal (to the downside) after an uptrend which resulted in an ending diagonal(of one larger degree), would suggest an excellent setup for short position.
The market selloff would accelerate down (through 1213.2), in an extending third-wave of Minute degree of A.
Correcting Down :
On the Intraday charts, Gold could have completed the Minute-degree correction in wave ((ii)), on the Fibo 0.5 retracement level.
A corrected leading diagonal (to the downside) after an uptrend which resulted in an ending diagonal(of one larger degree), would suggest an excellent setup for short position.
In the Intraday charts, Gold is correcting up in Minute-degree wave ((ii)) after tracing out a leading diagonal as the same first-wave down.
A leading diagonal to the downside after an uptrend which resulted in an ending diagonal(of one larger degree), would suggest an excellent setup for short position.
Medium-term Uptrend :
The Gold’s 25% countertrend rally(in a five-wave structure) that started in early-December, should be first portion of the process of correcting up in the Primary wave ((B)). Subsequently, Intermediate wave (A) would be corrected now in its same degree wave (B) (potentially to the Fibo 0.50 retracement level).
Note : As denoted on the chart below, the wave (A)’s extreme well achieved the origin of the prior bullish diagonal as Intermediate wave (5). (technical targeting based on the patterns)
Elliott Chart 