Elliott Wave Analysis: Gold In A Triangle, Wave D) Eyeing 1260
Gregor Horvat | Apr 27, 2016 05:12AM ET
A sharp reversal down on gold from 1270 looks like a temporary bearish move. From an Elliott Wave perspective we see it as wave C) that is part of a triangle which is now making a subwave D) after recent bounce from the trendline support. So in the short-term price can rise up to 1260 area but keep in mind that we will still need wave E) pullback before whole corrective pattern can be completely finished, most-likely at the start of May.
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. Triangles are overlapping five wave affairs that subdivide into 3-3-3-3-3.
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