Interesting bounce today....from a 5.50 support 'bottom zone'
This price action is not a hard one to see in the technical pattern so far.... From that nice rally....4.66 to 6.19 (let me call it 6.20 to make the math easy. )
a nice rally, that now gave the retracement target (basic Fibonacci) would suggest a pullback to the 5.45 area (5.30/5.45/5.60)...the key moving average was around 5.36... I think this target zone is still in play at this cycle unfinished.... but anywhere from 5.60-5.50 area does qualify as the possible completed pullback....BUT now IF we see big resistance hold strong right here at the 5.85/5.90 area...(this is a head and shoulders resistance ,50% fib bounce zone....this would be like a perfect algorithmic painting by numbers technical move that you cant draw more precisely if you were the Wall street casino programmer....
Here at the 5.85 resistance zone, is where this bounce could stop, turn around, rollover or whipsaw right back down this week, or nexxt week, depending on how long it wants to float here in the middle zone.....
but the set up is ripe for that Elliott wave pullback pattern....ABC to make a full pullback completed....and IF it does this pattern soon, the target 5.50 retested and target zone lower at 5.35 area is in play, and now ...because this first downwave ,has finished its move....from 6.20 to 5.50 ....this distance can be measured and more technical picture can be calculated.... and the math comes out to a finished target zone at 5.20 now.
So this is my update.... for a pullback target zone to be in play....what was a low zone of 5.35 area now looks like a low zone back to 5.20 area
(5.20-5.35- 5.50) pullback target zone by the current technical wave structure and math.
The 'bottom' at 5.50 now....since it technically is in the pullback completion zone....it could become tricky here, to forecast direction....because the 5.50 pullback is 'good enough' to become a bottom...even though I see it as only the first wave down Wave A.... and I expect an ABC pattern to play out.... but this 5.50.....IF it Does hold as a bottom....and great buying rally comes on from here...after a small pullback to 5.65 area, some great buying strength comes in soon....we could see a retest of the 6.20 zone, and rally stair steps up to test 6.70-7.00 area
There are strong targets in the top zone for a rally wave , technical math and a pattern than shows a target zone around 6.80-7.00 for this current wave pattern....later extending into 7.45 and that zone will become very critical for future pattern that has a target retesting the 8.60-8.80 top zone.... Hard to just describe all this with words.... but for now, the test is here at 5.85 resistance , and the pattern looking to complete the ABC downwave to retest the lowest points PVG is willing to fall again..... I do see 5.20-5.40 as still in play.... but IF we see this 5.50 bottom hold as support, and we see 5.65 area hold a stair step, uptrending now, to test the 6.20 zone, breakthrough it , target 6.75-7.00 and see what happens at that resistance... stair steps up and down, finally deciding in the weeks ahead, whether to go up or down.... The more I write the description the more muddy it begins to look, so I'll just say, this 5.85 zone is a balance point, first resistance , and the lower targets around 5.20-5.50 are still in play to complete the downwave pattern.....
This 5.85 middle zone, can become support, if we see 5.60 hold support here, rally up to retest 6.20....pullback to 5.85...and rally again to test 6.90-7.00 area.... I visualize these wave patterns in the coming days to see what happens.... Target zone around 6.80-7.00 is bug resistance and could Fail badly there, and retest 5.50 again..... thats the danger of the 7 dollar zone. and 7.45 area could do the same thing. like it did last time PVG rolled over....and fell to the 4.66 bottom. When Range Patterns develop, they make these kind of movements, all the way up and all the way back down. This has been what spot gold has done for year and a half now. Miners can do this too.
This whole pattern might not be a uptrending bullish pattern for PVG these days....it could become a Range Pattern....something like 5 to 8 to 5 to 8.
But for now, this wave structure is right sharp on a technical pattern....crafting a buy zone 5.00-5.50 area and a 'topping zone/'sell'zone around 6.70-7.00 , in this wave cycle.
In the next wave cycle , it looks like the battle would be between 6.20 holding support and 7.45 resistance.
sorry for the long description....
