The JSE Gold index has neared the point where wave (3) = 1.62 of wave (1). This can bring wave (4) but in high momentum situations can proceed on a blip into an extension of wave (3). Such an extension can be a full replication.
We should remember that this price action for gold is driven by grave uncertainties and mushrooming risks in general equities, currencies and bonds. Perhaps we should be careful what we wish for.
On the other hand this is insurance, and insurance is prudent.
28th August 2019:
The review of the bigger picture reminds that this is a bull trend, albeit with a painfully extended Primary wave [2]. The 3rd Primary wave is very evidently very active. The 3rd Intermediate wave within the 3rd Primary wave has reached the 1.62 fib ratio of the first Intermediate wave but this looks to be insufficient to ensure that there will be adequate clearance above [1] to accommodate a typical size of Primary wave [4]. The upcoming waves would need to be abnormally compressed as things stand. Accordingly the next most typical extension excursion is at the fib ratio of 2.62 of Intermediate wave (1), which all avid students of the Elliott theory will confirm. Beyond that is 3.62.
Should systemic risk and the chain of reactive policy failures, now into surreal negative interest rates, cause the public to become subjected to restricted access to money then there can be new extremes of fib ratios to chart.
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