Summary
Long term outlook: Up- Medium Term Outlook: Down
- Short Term Outlook: Sideways to Up
- Revision Point: Break above 1260
- Potential Medium Term Targets: 680 and lower
- Preferred Strategy: Take short term positions only, till we see an end of the corrective phase..
The price action during the last week invalidated our preferred count and raised our previously alternative count to the preferred status.
With a possible wave 1 at the December 22, ’09 low (1074.90), followed by wave A.2 at the January 11, ’10 high (1161.75), wave B.2 at the February 5, ’10 low, we are now in the making of a five wave advance to complete wave C.2. As per this scenario, our target for the completion of wave 2 will be above the January 11, ’10 high at 1161 and close to the 1185 to the 1190 level, but keeping below the December 3, ’10 highs at 1126.30). However, given our current outlook, we will expect a downward move at the completion of wave 2 to make lows below the February 5’10 low.
As a current alternative, we have a completed wave 2 at the January 11, ’10 high (1161.75) followed by wave I.3 at the January 28, ’10 low, followed by a.II at the February 3, ’10 high (1125.10), wave b.II at the February 5, ’10 low and now forming wave c.II to complete wave II.3. As per this alternative scenario, we would expect wave c.II to terminate at around the 1137 level, from where the downward move can be expected to resume.
Comments
Gold Daily chart - price action not very clear at present
$1126 is the ceiling for now until breached
very comprehensive analysis from which we will derive great benefit