Gold

Could this be the end of the correction and resumption of upward trend.

dl.dropbox.com/u/43650856/Gold%20-%204th%20January.htm

I didnt get to go long at the 1625 low but got a couple of positions in the 1630s..

Back to the 4 hr

clip2net.com/s/2FLY9





Look were first resistance
RMc

I'm really surprised that nobody followed up on this after the close on Friday night. A whopping great hammer right at multiple supports with possible bullish RSI and MACD divergences forming:



dl.dropbox.com/u/20815047/Golddaily06_01_13.gif

If this does follow through then a bounce off a 61.8% Fib is strongly suggestive of a wave 3 to come. Resistances at 1695, 1723, 1754, 1767 (trendline) and 1796 initially.

Jackozy wrote: I'm really surprised that nobody followed up on this after the close on Friday night. A whopping great hammer right at multiple supports with possible bullish RSI and MACD divergences forming:

dl.dropbox.com/u/20815047/Golddaily06_01_13.gif

If this does follow through then a bounce off a 61.8% Fib is strongly suggestive of a wave 3 to come. Resistances at 1695, 1723, 1754, 1767 (trendline) and 1796 initially.

Was just coming onto this jackozys. I suppose it's a half retrace of the hammer for the boys on here? The risk reward for this will be a good one. I would have preferred a green hammer breaking into the previous days close.

RMc

Jackozy wrote: I'm really surprised that nobody followed up on this after the close on Friday night. A whopping great hammer right at multiple supports with possible bullish RSI and MACD divergences forming:

dl.dropbox.com/u/20815047/Golddaily06_01_13.gif

If this does follow through then a bounce off a 61.8% Fib is strongly suggestive of a wave 3 to come. Resistances at 1695, 1723, 1754, 1767 (trendline) and 1796 initially.

I was thinking more along the lines of this.

Hi Nev,

Interesting possibility. On that count you've got wave 2 retracing to the 78.6% Fib of wave 1 and wave 4 retracing slightly beyond the 61.8% Fib of the wave 3 which goes against the guideline of alternation.

I know it's only a guideline, not a rule, of EWT but it seems a little harsh to me. Plus the 1795 recent high came with a bearish RSI divergence on the daily which, in my experience, tends to suggest a wave 5 top. The following 61.8% retrace would then make sense as a larger degree wave 2 down.

All IMHO and could be wrong!