Gold had already found support on the hidden trend line drawn from one of the tops, that helped me forecast a strong move down. In last 5-6 trading days Gold has been moving sideways. To see if the sideways price action is accumulation or distribution; I analyzed 15 minute chart using Elliott wave analysis and saw a flat correction, in which wave (c) is and expanding ending diagonal, thus confirming that the sideways price action is rather an distribution pattern. This gives us a very nice trading setup for bearish Gold. This 15 minute chart sideways pattern is actually wave (4). The main point of observation is that the wave (3) is not clearly subdivided that means wave (5) is going to subdivided. When we add distribution pattern to the mix, we realize a large drop in price of Gold is expected in the shape of a subdivided impulse wave. Looking at important resistance points 1550 to 1580 seems to be the zone for profit taking.
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Komentarz
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Gold is exactly following my forecast, I am looking for more bearish move for next two to three weeks. The previous support now becomes a key area for moving stop losses, just above the previous support shall be fine.
awaome