Gold: Price Trading In An Ending Diagonal
Gregor Horvat | Nov 20, 2015 09:32AM ET
Gold hit new lows of 2015 after another week of a very sharp leg down. We see price now in wave (c) of 5 that still represents final stages of an ending diagonal pattern. We see room for a leg down to 1040 or even 1000 area if we consider a throw-over formation which is very common in ending diagonal. Besides that we need to be aware of a sharp reversal once the ending diagonal is completed, so ideally bulls will step in 2015.
GOLD, Daily
An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast. A small percentage of ending diagonals appear in the C wave position of A-B- C formations. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.
An Ending Diagonal Pattern:
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