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Gold: Price Trading In An Ending Diagonal

Published 11/20/2015, 09:32 AM
Updated 07/09/2023, 06:31 AM
XAU/USD
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GC
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Gold hit new lows of 2015 after another week of a very sharp leg down. We see price now in wave (c) of 5 that still represents final stages of an ending diagonal pattern. We see room for a leg down to 1040 or even 1000 area if we consider a throw-over formation which is very common in ending diagonal. Besides that we need to be aware of a sharp reversal once the ending diagonal is completed, so ideally bulls will step in 2015.

GOLD, Daily

Gold Daily Chart

An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast. A small percentage of ending diagonals appear in the C wave position of A-B- C formations. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.

An Ending Diagonal Pattern:

An Ending Diagonal Pattern

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