The Golden KR (Key Reversal)

Negative Key reversal bars indicate a buying climax or market top. This is a conventional guideline that has worked very well in Gold monthly charts. Since 2001 Gold monthly prices have witnessed 6 Key reversal bars. The ongoing bar action is a potential Key Reversal bar, which could add to the history of monthly KR bars on Gold. This could mean an average pause of 10 months on the gold ascent. Mass psychology assets like gold can be very confusing at sub minor or minor degree (few days), but as the holding period or time increases, the potency of an indicator increases (noise decreases). Key Reversal bars are illustrated by closing prices (and volume). Simply putting, a lower than previous close from a new high is a KR. Now this all might look conventional pattern watching ,but from an Elliott Perspective, prices have completed an intermediate (B) wave structure and now the (C) intermediate down should begin. The most conservative estimates should also see Gold back in 950-900 levels. We can put the gold perspective quantitatively using performance cycles. The performance cycle between Gold and Oil is still pointing lower. From Mar 09 Short Gold – Long Oil delivered 40% returns. The pair is still running.
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WAVES.GOLD is a perspective product published on Tuesday and Thursday. The report highlights GOLD and other precious and base metals. The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools, sentiment indicators and other alternative research tools like INTERMARKET to spot outperformers.
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