Gold Prices Under Pressure Amid Easing Tensions
EWM Interactive | Apr 23, 2018 05:53AM ET
North Korea’s Kim Jong-un appears to have finally come to his senses. The isolated communist country announced it will discontinue its nuclear tests and close down its test site. The North Korean leader will meet with U.S. President Donald Trump in June to discuss the Asian country’s complete Elliott Wave Principle put traders ahead of the news.
The only thing Elliott Wave analysts had to do, in order to prepare for the current weakness, was to spot the five-wave impulse pattern from $1365 to $1333.50. According to the theory, impulses develop in the direction of the larger sequence. Once the corresponding three-wave w-x-y recovery was over, the downtrend was supposed to resume. As long as gold prices stayed below the invalidation level at $1365, another selloff towards $1330 was highly probable. Four trading days later, the updated 30-minute price chart of gold looks like this:
Wave “y” climbed to $1356 the very same day, but it never put $1365 in danger. Instead, the bears took over and slowly but surely dragged gold prices to a new low earlier today. Even if you are lucky enough to live in the woods and have never heard of Kim Jong-un, North Korea and nuclear weapons, the 5-3 wave cycle on the chart of gold would have still warned you about the recent price plunge.
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