In the 2 October Commodities analysis, we speculated a reversal zone for Silver and Gold. These reversal zones played out as price made a solid breakout upside. There is now a strong likelihood that the bullish momentum in Gold will increase in the coming weeks.
It was often said that the tops and bottoms of financial instruments can’t be determined. But with the help of a combination of a few technical tools spearheaded by Elliott wave theory, we have discovered that swing tops and bottoms of any time frame can be determined with an impressive degree of accuracy. It played out once more in Gold and Silver (check Silver last forecast).
In the last combined commodities (Gold,Silver,Crude) update, we pointed at Gold completing an important corrective pattern. We also stated the reversal level. The chart below was used.
Price is now at a very strong Fib-confluence zone. This is usually a good reversal zone as price might be supported there. It will be very nice to see how price reacts to a strong zone like this. Personally, I’m interested in price reaction to this zone.
10 October Gold Elliott wave analysis: bullish breakout?
Price was supported at this zone as expected and rallied. An impulsive bullish move is expected. Could the bullish momentum be strong enough to drive price above 1357 top?. If this happens, our long term bullish target is at 1400. The next coming days and weeks will reveal the strength of this rally. Stay tuned for the next update.
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