Gold Chart: Cup & Handle Pattern + Elliott Wave Principle!

[youtube=http://www.youtube.com/watch?v=TEwLLrykAiU]

• We’re talking confluence, elliott wave/cup-handle charts, Obama-Bounce, and Diwali in today’s “Chart This!” w/ Gary Wagner of TheGoldForecast.com. Before Wagner provides an in-depth tutorial on confluence, cup & handle chart patterns, and the elliott wave principle, we discuss the current corrections seen in the post-U.S. election markets, termed the “Obama Bounce”, and where Wagner sees gold prices heading from here. Wagner, a self-admitted, staunch elliott wave technician, says what we are currently seeing is known as a “Wave 2 Correction”; but following this will be what’s known as a  “counter wave” or “B Wave” which should take gold prices higher, possibly as high as $1760/oz. In response to some analysts who have claimed that this is the beginning of a bear run in gold and that we will see significantly lower gold prices now, Wagner states that after the counter or B Wave correction there is the possibly for one more bounce down, but the lowest he sees gold prices going is $1635/oz if they do in fact undergo another correction, unlike analysts who have forecasted that a stronger dollar will lead to gold prices in the $1450/oz range. Regardless of whether there will be one more correction, Wagner says soon we will be in the impulse phase, which should see higher gold prices testing the $1800 range again. We also discuss the possible impact of Indian Diwali on the gold market before launching into our tutorial on “Chart Confluence: Cup & Handle Pattern & Elliott Wave Principle”. Kitco News, November 14, 2012.

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