Tuesday 23 April 2013

GOLD, Tuesday April 23, 2013

Hi Traders,

Gold - at 1,415 right now - might be set for another dive

TARGET: 1372, the area 1333-1321 and possibly 1267

SETUP: in the daily chart below Gold is performing wave 7 downward out of 9. Wave 7 is unfolding, in turn, in 5 waves, 4 of them already in place. The last one (downward) is starting right now. See below wave 4 (in green)


The start of the new downtrend is confirmed by the bearish candlestick - see just under 3 (in green) and 4(in black), in the 4-hours chart below -  appearing just after wave 4 (in black): this a typical reversal called "breakway" pattern.

Finally, see the 1-hour chart below, which shows the continuation pattern within the channel which usually develops in 3 waves up (only).

ENTRY: the red lines of the "wave oscillator" - in the 1-hour chart - converged enough to indicate a good entry for a short. If you are not in already, there should be another chance for a short around 1416-17 in the 15min chart