Elliott Wave Analysis of Gold : 2 February 2010


A correction can sometimes be 100% of the prior move, and this is what we seem to have got in Gold. Take a look at this chart where the Elliott Wave count labels are clearly marked. Gold has retraced 100% of its prior rally and has embarked on a strong rally that we have been patiently waiting for (see update of 15 jan 2010). This move could potentially develop into a third wave of the final fifth wave in the larger degree, (or alternately, if one assumes the top has already been posted at 1226, this will be a “C” wave). In either case, we should expect the rally to continue to at least 1194. Of course, if I am completely wrong in my counts, we will have a disastrous sell off, but currently, I see no reason to worry about this, except to acknowledge that one could be wrong!



7 Comments

  • Anand

    Hi Ramki,

    I remember you Gold call in Feb and after yestardays rise came back to take a look at it… fantastic call… So can we assume that now we reached the target, we can see a good correction..

    –Anand

  • Thanks. Let us take a fresh look next week about where this move in Gold is likely to end.

  • Gary Wagner

    http://www.youtube.com/watch?v=i_XosYwN-5Q

    My take on elliot wave and gold from my video newsletter

    • Thank you, Gary, for visiting Wavetimes and for your post. Readers, Gary Wagner is a well-respected technical analyst, and is the co-author of “Trading Applications Of Japanese Candlestick Charting” a John Wiley publication, and featured in “Trading Systems: Secrets of the Masters “ A McGraw Hill Publication”

  • Waespi

    i think gold should start with the down-leg c . what do you think about the 5th wave in the b. how long could it take before the down leg is starting?

  • sonia

    hi ramki

    whats ur view on gold. it has touched a recent high of 1265 and is hovering near it.which wave do you think is this. I see that it has gone from 900 to 1265 after a fall to 1100

    • Hello Sonia,
      Think Gold will remain bid in the near term but if it reaches 1375 levels, I will get really anxious about when a big correction down will start

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