Loading ...Close shave on gold pennant, very close, too close? Decision point Wednesday.
OK, here is gold from stockcharts:
No matter whether you choose the red or blue lines of support for the pennant, the gold price flushed below them. Gold closed barely on the red line for the day but respectably above the blue line.
Actually, stockcharts is showing a close at $1210.10 but Kitco is giving $1208.30/$1209.30, which would be a little under the red line. Close shave!
The intraday range for Tuesday will have to be between $1210 and $1224, roughly to stay inside the pennant:
Range for Tuesday? $1210-1224 and then Wednesday it is going to have to get a move on and breakout or breakdown as I mentioned last week. The door is closing for a decision:
Now looking at the 3-day intraday charts from www.kitco.com gold and silver have both been kissing that sloping support line all day Monday. Silver looks less healthy than gold, breaking down a bit:
Silver is more in breakdown mode. A silver bug might still claim that is it holding on somehow:
All these wedges are clear 4th wave triangles.
After the fifth subwave (but NOT COUNTING THE TOP POINT as 1), they will break up.
However, I suspect this is merely the 4th wave within a larger 3rd wave, that started end Dec at 1056.
If so, a new rebound high to end 3, then ANOTHER correction. Then a further new high into the top.
I STILL have this as a large C wave of large FOURth wave, that began a year ago. This large C wave leg began in July/Aug or so.
Thanks for the comment PedroD. Have you got a chart for that? I am trying to visualise it!
Well I wasn’t too bad on today’s trading range 1210-1224. It has been 1209-1226 since last night’s open. Should have traded it!