Athens General Index completing 5 waves up
December 28, 2012
US indices at the edge of the ‘cliff’?
December 31, 2012

 

goldintraday

 

Gold continues to trade sideways after a leg up from 1636$ to 1666$. Prices now trade near the resistance and previous highs level, and we believe prices if they manage to break the resistance they will try to first reach 1684$ and why not 1702$. As mentioned in a previous post, Gold made 5 waves up, followed by the sideways correction. At least 5 more waves up are expected and that is why we give this bullish scenario more chances. Prices are expected to extend as much as the first upward move from 1636$ or 1,61 times that move (1702$). Bullish positions should be reconsidered if 1653$ is broken downwards. The correction has lasted long enough relative to the initial 5 upward waves, therefore prices should now start a new impulsive wave upwards. Stalling or weak prices will be a sign of inability for buyers to push towards the extension targets.

Concluding, if prices move above resistance or pull back and hold support at 1653(wave ii of new impulsive move), they are expected in the near future to extend as much as the first wave up(1636-1666) towards 1684. Next target will be the 1,618% extension at 1702. Reconsider positions if support is broken at 1653$.

As always, thank you for taking the time to read my post.

 

 

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.