Interesting article by Armstrong, suggesting my interpretation above is correct:
CL & GC
Posted 12 December 2016 - 12:04 AM
Posted this in an oil thread on the FF board...
Not sure crude is a sell at this juncture... it appears to be breaking upward through its RH&S neckline and through the latent TL on the indicator line.... the target for the RH&S is up near ~70.
Link to CL weekly: http://postimg.org/image/h0kd02huh/
Posted 15 December 2016 - 07:51 PM
Gold continues its decline. Just where might the correction end?
In the IT, I would look for potential support down at the 1090-1100 range to complete wave-c, which is the fib 50% retrace, and in the range of previous support at the wave-b low; the indicator line would likely also be in the range of one of the two lower UTLs. A bounce in wave-d would be next... then ultimately, I look for gold to find its bottom down between 900-1000... the ~890 level is the .618 retrace, and a classic level to complete a correction.... this is still a ways out, so I watch with interest.
Link to gold weekly chart: http://postimg.org/image/ji681kee1/
Posted 07 January 2017 - 02:22 PM
While I thought it possible for gold to drop just a bit lower before it bounced, I did feel the higher of the two UTLs on the indicator line would be supportive, and indeed, gold bounced just above the higher of the two UTLs on the indicator line. It's possible to see gold hang around this range for a bit longer, perhaps allowing the indicator line to meet the DTL at the zero level, then resume its downtrend, on down to the ~1000 - ~900 level, before the next leg upward... time will tell.
Link to gold weekly slow momentum chart: http://postimg.org/image/ipb4cpgih/