by David Brady
Gold has found at least a short-term double bottom at 1851. It has since bounced to 1935 as I type. Yet no major resistance has been broken, and therefore today I am going to focus on the parameters to signal whether the bottom is in or lower lows are ahead.
[…] So far, Gold is rebounding in a corrective fashion, in 3 waves up: ABC. We’re currently in wave C. The two resistance levels I am watching are ~1953, where wave C = wave A, and 2000, where wave C = 1.618 * wave A.
We’re currently in a bullish flag pattern (blue lines in chart above). It is notable that the upper trendline resistance is at ~1953, matching the wave C = A target. This also happens to be the 50-day moving average, which is currently around 1950 and still rising. When you get symmetry in levels like this, it makes them all the more significant.