Monday, October 10, 2016

Gold After The Bearish Break-out.

On 27th September, we were so firm on a bearish bias on Gold that all our forecast were pointing downside.
Two scenario we discussed in the last update on Gold gave us so much clue that price would more likely go downside than not.

In fact, for months, we have been talking bearish all the way.

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Price fell from the moment and later crashed to break out of the confinement.

We expect price to go as low as 1199 and maybe deeper.

Let's continue from the last updates.

Scenario 1.


Form 1375 where the bullish impulse move peaked, one would have expected a correction- which in this case is a zigzag with a triangle "(b)". The break out of this triangle is expected to be a motive wave . We expect price to correct upside to around 1302.5 (a retest of the break-out level) before the bearish move continues even stronger.

What IF the correction is not as deep as discussed and instead price goes sideway , we have another scenario to watch out for.


The "(b)" leg of the correction in this case is a flat pattern and price may have completed the first 3-legs of the resulting impulse wave. The corrective/consolidating rally could end at 1280 price region for an extended bearish move to 1199.

Price , of course, may decide to move in any other way; but we have clues and wait fro price to validate or invalidate.

The truth is- when price does validate, the effect is often profitable.

More updates to come later.

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