The Captain’s daily gold chart.
The Captain’s weekly chart.
Analysis:
Gold generally moved sideways this past week, closing just marginally lower at 4001.10.
Our current long-term gold count, starting from the 35.20 low made back in 1971, which remains incomplete, is as follows:
1 = 1920.80.
2 = 1046.20.
3:
i = 2073.40.
ii = 1614.40.
iii:
(i) = 2073.30.
(ii) = 1810.10.
(iii):
-i- = 2790.40.
-ii- = 2539.90.
-iii- = 3500.30.
-iv- = 3280.60.
-v- = 4381.40, to complete all of wave (iii).
We are now falling in a multi-month wave (iv) correction that has the following retracement levels:
23.6% = 3774.60.
38.2% = 3399.20.
Within wave (iv), we likely completed wave -a- at the 3886.50 low, and if that is the case, we are now moving higher in wave -b-. It is still too early to determine which form wave (iv) will take but based on the formation of wave (ii)…
We should expect wave (iv) to become either a bullish triangle, flat, or irregular type correction, where in the latter formation gold will make another all-time high in wave -b-, before it falls again into our suggested retracement zone.
A projection for the end of wave iii is:
iii = 4.236i = 5965.60.
Projections for the end of wave 3 are:
3 = 2.618(1) = 5936.00.
3 = 4.236(1) = 9033.60.
Active Positions: Flat!
US Dollar:
The weekly chart.
Analysis:
All of wave ^c^ is complete at the 114.75 high, and we are now falling in wave ^d^. Within wave ^d^, we have now updated our internal wave count to suggest that it has become a double three wave pattern as follows:
a = 100.68.
b triangle = 103.28.
c = 99.22.
x = 110.02.
a = 96.00
b = 100.22, if complete.
c drop after wave b ends.
It looks like wave b has become a double three wave corrective pattern as shown on our Daily USDX Chart. The first three wave pattern ran from 96.00 to 100.06, which was followed by a wave (x) drop that ended at the 95.85 low.
Our second three wave rally is still underway, which has a minimum target of 100.06, although it may now be complete at the 100.22 high.
Our retracement levels for all of wave b are:
50% = 103.01.
61.8% = 104.66
After our second wave b ends, we expect a drop lower in wave c to complete all of wave ^d^.
Trading Recommendation: Short risking to 105.00!
Active Positions: Short risking to 105.00!
Thank-you,
Captain Ewave & Crew
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