A Golden Light…
If we are going to be bent on Market Domination (which we are), we need to cover a wide variety of markets. This is our first hard commodities forecast, focusing on Gold (Constant Contract Futures and September Futures). As I am not as technically inclined as our mad-man Molecool, I will just be posting links until he keys me in on how to throw up charts. Bear with us as this is still in it’s infancy, and only Vikings leave their new-borns outside overnight.
Gold (as represented by /ZG or /ZGU8 (TOS)) has recently completed a five wave decline from 15 July, 2008. Elliott’s rules specifiy that the market now must bounce in a 3-wave manner before giving way to larger declines. As of Friday, 1 August, 2008, Gold has appeared to have completed both wave “a” and “b” of 2. What we are expecting in the near future (less than 1 week) is for Gold to continue rallying into the range of 942 to 946 (/ZG) or as high as 957 (/ZG), with potential of a small spike over the 957 target. However, there is a strong indication of resistance and potential end to the “c” wave of 2 at the lower range, based upon Fibonacci relationships. The equivalent levels in the September contract (/ZGU8) are 935 to 940, with potential to spike into the 953 area. The equivalent levels in GLD would be 91.5 to 92.5 with the spike range surrounding the 94-95 area.
/ZG Constant Contract
/ZGU8 September Contract
I have decided to use the Constant contract becuase it logs more time and gives more clear Elliott patterns. Many of you might be curious about an A/B scenario as you should be getting used to multiple paths for market direction. In this case, scenario A is layed out above, being the highest likelihood. Scenario B is that wave 2 is already complete and Gold is on the verge of another breakdown. Nothing says that scenario B is not valid, we just have more evidence leading to scenario A.