Gold :Medium Term Elliott Wave Analysis 25 July 2010

Elliott Wave analysis of Gold as discussed here on 23 December 2009 had warned us to look for one final upmove once the complex correction from the prior peak at 1226 was completed. We got the move that reached 1265 on 21st June 2010. I would now like to suggest that Gold has probably completed a major 5-wave rally off the low at 252 posted in July 1999. That means we should plan for a decline of minimum $350, and the correction will last at least 14 months.  However, the time to sell is not here, because we are just about finishing the first leg of the decline. Wait for a decent pull back, (at least 50% of the move down from 1265) and then join in the selling as it starts going down. It is of course possible to figure out more precise sell levels, but that will entail monitoring the intra-day charts regularly, something I am not able to do presently.

Enjoy. Ramki


  • Nick

    Good insight into Gold Ramki, Thnx. It would be nice to see some updated thoughts on Saudi Stocks, SABIC in particular. Thanks again.

    • Hello Nick. Sabic is still looking like it is caught in a complex correction. I will not want to invest in this stock here. Go back to my prior update and wait for the levels suggested. Incase it goes up directly for some reason, well, you only lost an opportunity. Not real money!

  • linda

    hi ramki

    GBPUSD has hit 155.2 as per your last forcast. what would negate those the wave patterns. could you also comment on AUDUSD since your last charting the wave count has gone berserk.

    appreciate your comments.

    • Linda, Thank you for the comment. Regarding AUDUSD, I hope you had placed a stop at 0.8560. Wave analysis is a technical tool that needs to be used with proper money management. AUD had declined by over 2% before it came back to stop loss level placed almost at breakeven rate. Good luck!

  • Sridhar

    Hi Ramki, just wanted to check if you had an update on the wave count for Sensex. Much has changed since the last count you published in Jan, does it look like some sort of complex correction?

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