Dr. Al Larson, PhD
MoneyTide.com
Chaos Clinic for 11/6/2020
In early October Gold looked ready to rally. This 8-hour bar chart of the gold Exchange Traded Fund, GLD shows what happened. At that point, one could count 7 swings in the decline from the high at 3, so it looked like gold had completed a 7 move down Chaos Clamshell.
Then GLD broke lower, below the 144 bar EXMA. After several bars below that EXMA, prices recovered above it. Then over the next few weeks, prices formed another corrective base. If one looks closely there are now 13 moves down from the high at 3. This happens in fractals. Normally Chaos Clamshells have 7 moves. But on occasion, when two major cycles are turning, there are 13 moves.
Prices have now moved sharply upward, turning all of the EXMAs up, and breaking the resistance line. That 13 swing correction is now a clear descending wedge correction, So I have now labeled that point 4. That means move 5 is beginning.
The congestion traded close to the harmonic price of 180. These harmonic prices are the integer divisions of the circle of 360. The 24th harmonic has steps every 15 points. Move 5 can be expected to reach one of these steps. The long term channel top on a daily chart from 2005 is above 225 now and reaches 240 mid-2022, so GLD has a lot of upside potential.
Information on this page contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.