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Gold weekly showing possible Wolfe wave configuration. Lines drawn through closing prices. I interpret this structure for now as a leading wave A diagonal with Elliott notation for wave 3, 4, and 5 as depicted. Given the structure and divergence I anticipate a pullback soon to the converging support around 1285 then a bounce and a lower low. Were wave 5 to end today I would be looking for a 50/61.8% pullback eventually i.e. either to the target line around 1215 or slightly lower around 1185. I agree completely with the premise that 370 HUI is a likely target and gold will complete its move in the 1520+ area after this wave B correction is over. Just my interpretation, subject to change. No bear bashing please.
Or maybe its just a Bullish Rising Wedge that has broken out.
A Wolfe wave is just a failed breakout of a wedge.
A much higher Percentage of breakouts are….well…Breakouts !
Certainly possible. I lean to the posted interpretation only because of other things I’m seeing. E.g. the blow off in bonds, the Wolfe wave in USD on the Yen, the Euro chart etc. I sense an imminent move to the USD and reversal in bonds. Maybe gold benefits from the next round of chaos or maybe liquidity issues force bond selling and gold responds badly to the yield spike.