We are actually in the last wave to end Primary 2. Possible Fib. retracement from the top are
1250 (38.2%), 1211 (50%) and 1174 (61.8%). Actually, 1240 equals 162% of wave-a ... On a lower time frame, we can see a ending near 1250.
The pullback can be over but it is still possible to make another wave 4 (smaller degree) and another low to end
this pullback before going higher for Primary 3.
Gold's drop is a strategic buying opportunity. Last tuesday (Oct. 4th), for no apparent reason, we saw 3.2 million ounces (1000 mts ) of paper gold dropped on the Comex opening and over the next 30 min.
Market manipulators choose a Chinese Holiday to massively attack gold prices. Price wise, this represents a good opportunity to add some position in Gold .
This past week there was some panic selling in Gold which is what we need to see happen to put in an important low. If Gold were to break below the 62% retrace on a closing basis, that would be the first red flag that the bull market in in Gold is in trouble.
At this moment, this is a normal correction taking place in one of the strongest first legs up in history for Gold .
The long term bull case is still inact. Gold will not go below 1,000.
Disclaimer : I am trading Gold stocks and NUGT/DUST for short term trading.
Please trade at your own risk.