Elliott Wave chart analysis for Gold for xxxx, 2011. Please click on the charts below to enlarge.
This 4 hourly chart shows all movement since the high at 1,575.41.
Gold is most likely within a fourth wave correction. This structure is most likely a zigzag. Wave A green is an impulse. Wave B green is a triangle.
Wave C green seems to be unfolding as an ending diagonal. Each subwave must subdivide into a zigzag.
Wave 4 pink may not move into wave 1 pink price territory. This wave count is invalidated with movement below 1,444.60.
The hourly chart shows the end of the triangle and the beginning of an ending diagonal for wave C green.
It seems obvious that there was a triangle structure which most likely ended at 1,504.4. Thereafter we see a very clear zigzag structure downwards where we were expecting an impulse to unfold for a C wave at green degree.
When a C wave begins with a zigzag then the most likely explanation is that it is an ending diagonal.
Wave 2 orange of the diagonal may not move beyond the start of wave 1 orange. This wave count is invalidated with movement above 1,504.40.
There are some remarkably excellent fibonacci ratios in this wave count which gives me confidence that this labeling is correct. I have charted an alternate but the ratios on it are horrible, so I’ll not present it to you as it is most likely wrong.
Ratios within wave C purple of wave 1 orange are: wave 3 aqua has no fibonacci ratio to wave 1 aqua, and wave 5 aqua is just 0.07 longer than 0.618 the length of wave 3 aqua.
Ratios within wave A purple of wave 2 orange are: wave 3 aqua is 0.28 longer than 1.618 the length of wave 1 aqua, and wave 5 aqua is 0.78 short of equality with wave 1 aqua.
Ratios within wave 3 aqua of wave A purple of wave 2 orange are: wave 3 red is 0.48 short of equality with wave 1 red, and waves 3 and 5 red are perfectly equal in length.
It is extremely likely that wave C purple will reach past the end of wave A purple to complete a zigzag for wave 2 orange. We should expect upwards movement to end above 1,499.78 but not above 1,504.40. Wave C purple will reach 0.618 the length of wave A purple at 1,503.55. This is our target.
Thereafter we should see another zigzag downwards which must take price below 1,471.66 as wave 3 orange must take price beyond the end of wave 1 orange.