Gold has been trending down since September 2011. Is there a chance of hitting an absolute minimum in the upcoming months? Are we on the verge of new major uptrend?
If you want to take advantage of The Next major GOLD uptrend come to my presentation in Sydney on Wednesday,September 24 for $15 only.
For more info check on SYDNEY TRADERS. To pay for your booking CLICK HERE.
GOLD - ANALYSIS
The Central Bank Gold Agreement (CBGA) is supposed to be implemented from Monday Sept 29. Theoretically, from this day on, each of the 20 signatory banks - as well as the ECB - should stop selling Gold for sometimes.
However, there's the chance for some persistence of the bearish market till mid October due to the side effects of the termination of the quantitative easing. The combination of these events is likely to bring weakness to both Stocks & Commodities, included Gold.
Gold, now at $1225 is bouncing back to 1241-43 and even 1248-51 to form the minor wave 4 (see targets in the 1-hour and 4-hour chart) which would soon be followed by another leg down to 1180-82 and maybe 1164-54.
By using the Elliott Waves you can reasonably pinpoint a bottom or a top if you know how to label the waves correctly.
In the case in parole, Gold might finally sink to a new "historical low" at 1064-1054 or $1089. The area at $1043-$1032 is, by the way, the ultimate support. Note that even Goldman-Sachs still sticks to forecast a low at $1050.
This low should mark the absolute minimum that everyone was waiting for, given that the ultimate support at $1043-$1032 is considered almost unbreakable. If this is true, a major uptrend should then follow.
first up to
then down to the area 1180-82, followed further down by
T1: 1164-1154 (to form a triple bottom)
T2: 1089 (to reach the theoretical fibo target)
T3: 1043-1032 (to sit on the primary support)
Weekly chart - click to enlarge
Daily chart - click to enlarge
Wave oscillator - daily chart - click to enlarge