TechnoMeter

The gold price trends have been sloppy since December 2016. That sloppy behavior is evidence of a three-wave move, a correction. Therefore, the current increase in gold prices may not last long.



The break above $1357 eliminates the near term triangle possibility and indicates the rise since December 2016 is a large ‘B’ wave. ‘B’ waves tend to be sucker waves that are sloppy and overlapping and the trend for the past year fits that description. The Elliott Wave analysis calls for gold prices to remain below $1465.

Our gold price forecast is for a bearish reversal to occur between now and $1465. Though that is a large region, we can use simple technical analysis to help us enter into the bearish reversal. For example, a break below $1306 would begin to carve a lower low in gold prices. A successful move below $1306 will allow us to analyze the charts for a bearish 5-3 wave sequence. The bearish 5-3 wave pattern would allow us to use the swing high as a risk level.

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