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Elliott Waves: Gold 20th July 2017

|Includes: SPDR Gold Trust ETF (GLD)

Gold in 4th Wave Consolidation

Long around $1234 (limit) or

Long at breakout around $1244

Gold has been enjoying an uptrend after breaking a downsloping trendline. This is expected by the Elliott Waves model. 

Take note that 4th wave are notorious for extension (or combination) - meaning they can take quite a while and the structure can be a zig-zag with a flat or vice versa. However, given that this expected to be the 4th wave of a 1st wave of a 3rd wave, my bet is that it will be soon before it breaks out.

If you can hold, my suggested strategy (in accordance with my own psychology), is to enter a small size first, set a limit order at the support around $1234 and a stop order at $1244. 

Below is the chart (closing line chart for clarity) for my EW counts.

Gold 4hourly Chart with EW counts