Over the past few weeks gold
has been in a corrective phase following the Brexit wave, which in our counts has reached the top of a 5 wave impulse cycle. This five wave cycle is, at the highest cycle levels, corrective in structure following the long descent of the past 6 years. This corrective structure indicates to us there is a high likelihood for the near to medium term to see bearishness in the market. However, it is important to remember that we are VERY BULLISH
in the long term, and we see a large bat pattern
forming. We expect a return to 1260 over the next few weeks or months, and after that we do expect to resume the rise. We would not be surprised if the elections and the bear market we expect to come soon in stocks to affect this rise in gold
It is possible that when we break the trend resistance line we will see a considerable drop, far below 1260. This is due to the corrective structure at the highest cycles. Please trade safely and remember to control your risk.