Precious metals managed to punch through the ceiling and escape from their bearish corrective structures.
A new cycle seems to have started, and it could be quite interesting, as the expectations would reflect a continuation for the recently started bullish journeys.
“November and its Intriguing Charts – FX Majors” and “Wave Counts & Correlations – Dollar, Yen, Euro, Metals” trading videos contain analysis in which the probability for bullish impulses to emerge have been shared and explained.
When it comes to timing the reversals, the “G20 Summit, FOMC & OPEC Vs. Charts & Technical Analysis” article displays an example.
XAU/USD – Daily Chart
In July 2018, Gold breached through a strong trend-line (dotted red), and after it touched a bottom in August 2018, the yellow metal has been channeling its way upwards.
The Ascending Channel has been labeled as a bullish corrective sequence within a Minor degree ABC (light blue).
XAU/USD appears to be heading for a possible retest of the mentioned trend-line, in an attempt to resume a bullish cycle. However, from an Elliott Wave standpoint, the larger degree pattern could resemble a complex structure.
Minor C (light blue) would be marked as a Motive Wave and could take a form of either a Bullish Impulse or an Ending Diagonal.
Should the bullish sequence be destined to continue, then XAU/USD could reach the 1280.00 levels, but could also reach as high as 1300.00 levels.
XAG/USD – Daily Chart
Silver has also been trading within a sideways and choppy structure ever since the bottom in September 2018.
As a classification for the current pattern, XAG/USD has been labeled within a Minor degree ABC (blue) bullish sequence.
Minor C (blue) could commence a bullish impulse, one which could cause an impressive spike.
If the labeling is correct and Silver would aggressively start a rally, then the 15.35 levels could act as a medium resistance, while the 16.25 levels could act as a stronger resistance.
Many pips ahead!
