Gold Update: Bulls Finally Took The Ball

Aibek Burabayev - Contributor - Metals

February scored the first point in favor of the bulls breaking the downtrend. Usually, when we get something that we want, after moments of winning euphoria, we start to feel sad about further uncertainty – what is next? To avoid that feeling we should work out a new plan like the one that I prepared for you below.

Chart 1. Gold Monthly: Gold Bugs, How Deep Is Your Love?

Monthly Gold Chart
Chart courtesy of

Speaking globally, the sad thing for the bulls is that we can’t be sure of the Big Bull Run until the price is below the previous high at $1920. I can add more points saying that there is still a chance of a complex correction, which can last longer, much longer. Gold was in an uptrend for 12 years and the current correction took only 4.5 years. Therefore, the probability of its prolongation is high as the correction might last longer the than major trends. It is human nature when we have a clear idea to act decisively and swiftly (trends), but once we fall into a thoughtful mood reflecting of further plans we are losing/taking our time to think everything thoroughly (corrections). Continue reading "Gold Update: Bulls Finally Took The Ball"

Gold Update: Unstoppable?

Aibek Burabayev - Contributor - Metals

It's been awhile since I posted my last gold update in October. I haven't written about gold because everything was going by the plan: gold fell right after the post and even hit a new low making bears happy. I expected to wait for the week of the 29th of February as it was my time target in that update. But gold's price overshot the recent high which was the starting point for the last drop towards the new bottom invalidating the experiment.

Below is the chart from my earlier gold post to refresh your memory. I added blue call-outs with some new comments to show where it went wrong.

Chart 1: Updated Experimental Gold Chart

Updated Experimental Gold Chart
Chart courtesy of

I shadowed the part of the chart before the post date (October 22nd) to highlight the progress of the price. Gold quickly plunged down from the post date. It went all the way down with the largest drop in November and hit a new multi-year low at the $1046 level at the end. Continue reading "Gold Update: Unstoppable?"

Gold Update: Space Mission Aborted, Rescue Landing Is Ahead

Aibek Burabayev - Contributor - Metals

One of our regular readers was among the few who openly rejected the idea of Gold’s reversal to the upside, he sees a lower bottom for the metal.

So let’s see why I changed my mind and now think that we are not going to rocket higher soon. Below is my previous post’s daily chart. I've added remarks to the chart to show what went wrong.

Gold Daily: Post-Mortem

Daily Gold Chart FOREX:XAUUSDO
Chart courtesy of

I supposed that after we received the first bull confirmation of higher lows, we can fly higher at a distance of the 1.618 Fibonacci ratio in the green CD segment. One can notice that we hit a new high last Thursday around the $1192 level. So why should we cancel the bullish scenario now? Continue reading "Gold Update: Space Mission Aborted, Rescue Landing Is Ahead"

How to Find Trading Opportunities in ANY Market: Fibonacci Analysis

By: Elliott Wave International

Elliott Wave International's Senior Analyst Jeffrey Kennedy is the editor of our Elliott Wave Trader's Classroom and one of our most popular instructors. Jeffrey's primary analytical method is the Elliott Wave Principle, but he also uses several other technical tools to supplement his analysis.

You can apply these methods across any market and any time frame.

Learn how you can get a free 14-page Fibonacci eBook at the end of this lesson.

The primary Fibonacci ratios that I use in identifying wave retracements are .236, .382, .500, .618 and .786. Some of you might say that .500 and .786 are not Fibonacci ratios; well, it's all in the math. If you divide the second month of Leonardo's rabbit example by the third month, the answer is .500, 1 divided by 2; .786 is simply the square root of .618.

There are many different Fibonacci ratios used to determine retracement levels. The most common are .382 and .618.

The accompanying charts also demonstrate the relevance of .236, .382, .500 .618 and .786. It's worth noting that Fibonacci retracements can be used on any time frame to identify potential reversal points. An important aspect to remember is that a Fibonacci retracement of a previous wave on a weekly chart is more significant than what you would find on a 60-minute chart. Continue reading "How to Find Trading Opportunities in ANY Market: Fibonacci Analysis"

Triangles Offer Traders Important Forecasting Information

By: Elliott Wave International

These days there's no shortage of books about trading. You could read for months before you find a book that applies to your trading style.

The free 45-page eBook -- The Best of Trader's Classroom -- is specifically for Elliott wave traders. This excellent eBook will save time and deliver the knowledge you want.

It's written by Elliott wave trader Jeffrey Kennedy: He had individuals like you in mind when he said:

I began my career as a small trader, so I know firsthand how hard it can be to get simple explanations of methods that consistently work. In more than 15 years as an analyst since my early trading days, I've learned many lessons, and I don't think that they should have to be learned the hard way.

The Best of Trader's Classroom offers 14 trading insights that you can use.

Consider these examples of what you'll learn: Continue reading "Triangles Offer Traders Important Forecasting Information"