Gold

Thank you redchilly for your detailed answer, and if this is anything like your usual
analysis it will be spot on.
I agree that 1682 is significant for now and I think a break above 1700 area would be bullish.
But I have a couple of doubts that are stopping me buying.

On the divergence, I would expect some within the wave 3 (like between sub-wave 3-5)
and then 2 more divergences, 1 within the wave 5 and the other between wave 3 & 5.

Also why would the e of triangle be so high compared with a & c?

Oops didn't post the Daily Zoomed out view with WXY in the previous post

Broad-rock,
I normally refrain from debating EWT but its a very interesting chart so couldn't resist!
Here is how I see it & its all IMHO.

On a Weekly chart it looks like a possible Corrective Wave in a 3rd or 5th wave Extension

Instead of a flat 3-3-5 it looks like a 3-3-3-3-3 Horizontal Descending Corrective Triangle with a Top declining and a Flat bottom in a Bull Market


Weekly Chart


Looking at the Daily chart you will see its a Combination Corrective Elliot Wave made up of a 5-3-5 Zigzag(W), any three(X) and a 5-3-5 Zigzag(Y) again (rare)!

Now take a close look at Y on daily chart (Zoomed in view)..you will see 5 waves are already completed confirmed by a bullish divergence on rsi between subwaves 3 and 5


Bottom of 5 on Y was at 1625 (long wicked candle)

How to trade this??
On a Daily Chart we can label 1625 as 1, the swing high after that at 1697 as 2 and the recent swing low at 1652 as 3...we get a potential 123 low forming (its made a HL but its still not made a HH which will only happen if we see a 123 low breakout (close above 1697)

For a better R:R ratio if you look at 4H chart its making another 123 low with 1 at 1657, 2 at 1682 and 3 as 1665. So a SL below 1665 for a long position and a close above 1682 will indicate a move towards 1697, 1796 and 1921(all time high) giving a R:R ratio of more than 1

A close below 1625 will indicate a move towards 1522 which is the flat bottom of the triangle

PS - as far as I am aware wave 4 and 1 overlap can be seen in Diagonal Triangles in a motive wave(ending or leading) as well as in corrective waves

This is a weekly chart, I am thinking it is in a wave 4 (possibly a flat 3,3,5), but
not sure about the C wave, can the 4th wave retrace into the 1st wave?
I know that in an impulse this would ruled out except in a diagonal, but if this
is a corrective wave 4, can this be allowed, and if so could Gold be headed to the 1590 area?

dl.dropbox.com/u/43650856/Gold%20-%20Wee...sible%20wave%204.htm

Looks like gold is getting close to a move.

Up ?

dl.dropbox.com/u/43650856/Gold%20-%20Daily%20-%2022nd%20Jan.htm

Looks like it's made a nice little backtest of the short term downtrend breakout today.