GOLD has seems to be at its distribution area. Based on TP calculated using Law of Cause & Effect PnF chart, conservative target can be considered reached at USD2100 area (2077 to be exact).
Here's how I deduced TP reached:
6 years of accumulation (2013-2019) at USD1180-1400/oz shows a classic schematic of wyckoff accumulation phase. On PnF chart, using box size of USD5 and reversal amount of 3, I got a total of about 154 accumulation columns. With this information, I can get the approximation amount to be marked up = 154*5*3 = USD924.
From the chart, we can see a complete 5 Elliot Waves and its ABC correction waves.
Although it might be true that Gold is currently at distribution phase, it doesn't mean that Gold price is set to make a cliff diving. Distribution phase might take up months to years, as seen from historical data in 2012, it took 1 year of distribution before mark down. Possible distribution range might be around USD 1800-2000/oz
IMHO, I think it is not a good time to start buying gold now for a long term investment. However, for a short term play around USD 1800-2000, one can consider and find a good entry point around the neckline of this distribution area.
Here's how I deduced TP reached:
6 years of accumulation (2013-2019) at USD1180-1400/oz shows a classic schematic of wyckoff accumulation phase. On PnF chart, using box size of USD5 and reversal amount of 3, I got a total of about 154 accumulation columns. With this information, I can get the approximation amount to be marked up = 154*5*3 = USD924.
From the chart, we can see a complete 5 Elliot Waves and its ABC correction waves.
Although it might be true that Gold is currently at distribution phase, it doesn't mean that Gold price is set to make a cliff diving. Distribution phase might take up months to years, as seen from historical data in 2012, it took 1 year of distribution before mark down. Possible distribution range might be around USD 1800-2000/oz
IMHO, I think it is not a good time to start buying gold now for a long term investment. However, for a short term play around USD 1800-2000, one can consider and find a good entry point around the neckline of this distribution area.