In our last Silver analysis (read more), we talked about the potential rally and the corrective sequence that should finish soon. This time, we analyse Gold’s technical situation for the following weeks.
The Big Picture
The golden metal started a bullish cycle in November 2015, when the price touched $1,045.4 and finished at $1,376.5. After its completion, GC began to develop a complex corrective structure, which still is active. The long-term vision for Gold calls for more upsides. The underlying condition for the next impulsive movement is for it to be similar in length to the first bullish leg.
Following the Bearish Sequence
Once GC has reached the $1,349.8 level on Feb. 19, the golden metal started a corrective sequence as an A-B-C structure. The Gold’s daily chart shows that a wave C is in progress.
Equal Legs Completion
As said in the previous analysis, the second leg completion does not imply a reversal movement. On the 4-hour chart, in the internal wave C, we observe that the second leg has reached 100% of equal waves. But this is not enough to determine what the next move could be.
The internal segment which topped at $1,314.7, is developing a consolidation formation, which we foresee should be a complex structure. We expect that the bullish move will be limited within the last swing zone ($1,285.6), then, starting a new bearish move. Short-term, our bearish target is $1,264.3.
Remember that the price is not compelled to move as our forecast implies. The charts released corresponds to the Elliott Wave Theory application.