Gold just rose to $1272.42 so far after being trapped in a consolidation for about three weeks. Could this breakout be predicted? Could we explain it with some economic or geopolitical factors? Probably, yes. But what would be the point? The move has already happened, we cannot profit from past developments. Besides, finding the reasons behind the current rally will not help us predict the next move. The question is, is there a method, which allows us to make accurate forecasts, before it is too late, so we could position ourselves for the next moves? Yes, such method exists. It is called the Elliott Wave Principle and, by the way, we used it to predict Gold’s current strength. On February 29th, our premium clients received the following chart.(some of the marks have been removed for this article)
As visible, we were expecting waves d) and e) of a triangle correction to form, before the bulls return. The explanation, attached to the chart, stated that “buying opportunities should emerge after the end of wave e). In this case, the stop-loss order should be right below the bottom of wave c), while the target lies near $1270.” The next chart shows how gold has been developing during the week.
Waves d) and e) developed just as planned. Soon after the end of the latter, the bulls finally returned and took the price of gold to $1272.42 so far. This is another excellent example of the Elliott Wave principle’s ability to prepare traders for what is most likely to happen early enough for them to be able to take advantage of it. But the more aggressive among our premium clients were able to trade even inside of the triangle, since we sent them a closer look at it. See it below.
By using nothing more than the Fibonacci ratio, we assumed wave d) should end around $1247, while wave e) was likely to approach somewhere near $1221, before the uptrend resumes. The next chart shows how things went.
Wave d) terminated at $1248.48, almost exactly where the Fibonacci ratio predicted, while wave e) found support at $1224.70 and gave the start of the anticipated rally to our final target of $1270. Why do we trust the Elliott Wave principle? This article speaks for itself. Judging from the extraordinary accuracy of that analysis, we believe the Wave principle has gained our clients’ trust as well. Why do not you give it a chance to earn yours too?
What to expect from now on? Is gold going to continue even higher or the resistance near $1275 would turn out to be too strong for the bulls to breach? Prepare yourself for whatever is coming. Order your on demand Elliott Wave analysis now or pre-order the one due out next Monday at our Premium Forecasts section. Stay ahead of the news in any market with the Elliott Wave principle.