Trying to understand the gold chart....
I spent a few hours today drawing and studying the spot gold chart.
After examining all the bottoms and tops and all points in between, all support/resistance and all possible Elliott wave patterns,and examining all sets of possible Fibonacci retrace and Arc measurements in the picture,I have concluded that the spot gold chart since the 2016 Bottom.... cannot be understood by the technical analysis at this point.
The wave pattern highs don't match the lows,meaning the place where pullbacks should hold is far askewed in relation to the peaks. .The Elliott wave pattern does not have the right structure to it for a normal reading. There were surges that went too high and pull backs that went too low. There were Botoms in 2015 that should have held (1072) that fell lower to start 2016. The surging wave 1 was stretched into wave 3,with no wave 2 retrace...but then, after the wave 5 completed (1377) the retrace plunged down to the 'wave 2' target at 1124...convoluted and orchestrated by the Cartel that controls the spot gold price. Now we see the latest rally that gradually was allowed to climb to retest the 1362 as a peak (so far)... the only conclusion I have come to at this point, is that the Cartel cannot afford to allow Gold to reach 1400. They Must keep it capped below that target.
Capping at 1362, was slightly shy of the target zone a double top at 1377,and overextending to 1380 area,maybe even flirting with 1390 area, but NOT 1400 !?!
I have decided the technical chart has been so manipulated and the Elliott wave patterns have been so distorted,in relation to the Fibonacci levels, that its only showing me how manipulated the price movements have been.
That's the only trustworthy conclusion I can come to, the power of the Cartel/FED/City of London, the powers controlling price have moved gold as they please. Including the current rally. I believe it will continue to be under their control in the next upcoming danger zone at 1400 spot. They Must keep it below 1400 in this cycle. and because of this,I believe the price will be taken back down to retest 1200 area and probably get there around the year end. IF the Cartel doesn't send it back to 1200-1180 by year end, it could be heading to 1480-1500 by year end. ....and I just cant see the Cartel allowing that to develop .
