Enda Glynn writes: My Bias: Long towards 1550
Wave Structure: ZigZag correction to the upside.
Short term wave count: Upside from 1120~, target 1500
Long term wave count: Topping in wave (B) at 1500
Important risk events: USD: Core Retail Sales m/m, PPI m/m, Retail Sales m/m, Core PPI m/m, FOMC Member Harker Speaks, Prelim UoM Consumer Sentiment.

GOLD pushed higher today in yet more bullish price action.

The declines off the high of the day again look corrective.

Todays rally brought the 4hr RSI up to the overbought line for the first time since October last.

So the extent of the rally so far necessitates some sort of correction soon.

That correction will come in a three wave structure and decline into about 1170, or 50% retracement of the recent rally.

The short term chart shows a completed five wave structure in wave (i) blue, and the 4hr chart shows a complete wave [i] green.

Both charts call for a small correction, but at two different degrees of trend.

The short term chart is actually more bullish in terms of its labelling in that the current rally is only the first leg up of the five waves that will make up wave [i] green.

I think the minimum we can expect from here is a rally into 1500, as shown on the 4hr chart this is being viewed as a corrective rally in wave [B], with a further wave [C] to come to the downside.

The 30 minute chart foresees an even greater rally though, one that would top the all time high of 2011, it will become clear soon enough which elliott wave interpretation is the correct one.

By Enda Glynn

http://humbletraders.com/

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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