Sometimes, Elliott wave theory can let you see into the future! This was one of those weeks for a few of the markets we analyse. we saw some price targets being met and some confirming action for our wave counts, which makes me feel a little more confident for our calls.Let’s try and position ourselves for the coming week, shall we!

Here is the analysis for gold and the Dow from a short and medium term perspective. And I hope to give you an idea of the current posture of those markets and where the they are likely to move in the coming weeks given the current Elliott Wave count.

Gold

In the medium term gold is in a correction higher which should take the form of three waves. Wave A up is finished, we are working on wave B at the moment and wave C should take prices higher in a rally to a possible target around 1400.You can see below that the action of late has been very overlapping and choppy, it looks very corrective in nature. There is no real net progress being made up or down! Going by the count shown below, this choppiness should be resolved soon. with the completion of wave c of b down.

gold_2.png

 

On a shorter term chart we can see the sideways correction in full view.

I have labelled this smaller degree correction as a Flat. These flat corrections usually form within a parallel trend channel and it looks as if it may have concluded today.

Next week should see gold continue the decline in wave c (blue) with a possible lower target of 1140 to 1160.

There is an active alternative count that I am considering but it will take a break of the 1285 high to confirm that count. for now there is no reason to change the view.

gold_1.png

For more on how to use Elliot Wave go to How to identify trends, Tops and Bottoms with Elliot Wave Theory