Stock Market and Gold Fibonacci relationships
Stock-Markets / Stock Markets 2012 Jul 28, 2012 - 03:17 PM GMTIn the last two days I talked about Fibonacci relationships in the Elliott Wave structure. Generally, in an impulsive (5-wave) move where wave [iii] is the largest, then wave [v] is often equal to wave [i], or some other Fibonacci relationship may apply. This morning I gave it my best shot, suggesting that wave [v] would be equal to wave [i] at 136.75. Actually, my calculation was off. The correct target was 136.52. Not enough coffee, perhaps.
Neither of them apply, however. At the current high, wave [v] is a Fibonacci 1.886 times the length of [i]. It could stretch a little more to 2 times, but time is running out. This extra kick higher will end badly by today’s close. We still have 12.9 calendar days or 8.6 trading days to dive into a deep wave (3) and Master Cycle low.
Here’s another Fibonacci relationship that is just appearing on the scene. This (A) - triangle (B) – (C) pattern has yet another anomaly. Generally in an a-b-c, wave c is generally equal to wave a, or some Fibonacci relationship. In this case, wave (C) is a Fibonacci 50% of wave (A). Its progress was stopped by the upper Head & Shoulders neckline just under 158.00.
In this case, it appears that Primary wave [C] of Cycle wave I is ready to go. What I still find fascinating is that the 50-day moving average did a better job of defining the triangle pattern than the upper trendline!
That’s all for now.
Tony
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