Gold Futures
Don’t be fooled by the title of this article. When I say mine I speak of land mine. I spent some considerable time trying to make sense of the structural makeup of the gold market this afternoon. What struck me most of all was the sequence of non-impulsive moves both rising and advancing from the low seen on February 8th. It appears that we are forming an irregular B wave triangle which I believe is not yet complete. Currently I’m looking for a continued minor advance to roughly 1333. It is important that this final move does not violate the 1342 inner high which I contend set c wave of an a-b-c-d-e triangle. The d wave bottomed out at the recent low of 1313.02 made on March 9th. The 1333 level is a geometric convergence zone along with the .786 retracement. With a stop placed just above the 1342 price I believe one could capture a favorable risk to reward setup. This is what it is all about to me. My analysis does not attempt to predict market moves but to isolate high risk to reward opportunities. Playing the scenario forward one would look for a break below the b-d trend line which will most likely come in around 1317. The final confirmation would be a violation of the b wave low at 1303.6. My downside objective for the leg down, which would be the C wave of the pattern, comes in around 1275. This equates to roughly a 6 to 1 favorable return.
My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation. Please feel free to contact me at Walsh Trading to discuss my insights into this or any market of your interest. Tomorrow I have scheduled my 11th webinar. During this I will be applying my analytical approach to this and other future markets. Please feel free to contact me at Walsh Trading to discuss strategies employing both futures and options to take advantage of this scenario playing out.
312-957-8108