August Gold – Gold offers another great example of the “energy coil” in action. A short-term reaction swing had formed between May 31st and June 3rd when Gold posted two consecutive lower closes and tested the lower up-sloping parallel line and 20–day EMA support. The reaction swing occurred inside the longer-term reaction seven-day reaction swing between May 12th and May 21st. After testing support on June 4, Gold ended the corrective pullback and began a $56.00 rally during the next three trading sessions. The reverse/forward count from the new reaction swing projects a future reversal date of June 14th with a target objective at $1280.00.
By John Crane
