We have a 5 wave to complete a measured move. It does make sense to end the decline here but it is possible to get some form of extension toward 1880. This should be a fantastic opportunity to go long and ride gold back up towards 1400. Its too soon to pick an exact upside target however.
Recent price action can't be ignored and is not at all ideal for bulls. Two scenarios are possible and more and more the bearish case is looking more likely. Be prepared for both. A STRONG move under 1270 we have to cancel my previous long idea and go consider shorting to 1241, if that breaks then we will most likely reach the 1180-1220 area.
The decline was so violent that if you blinked you missed it, it happened so fast I couldnt even get short at X. But it appears that the entire decline may be over and we are ready to resume the bull market. This idea is wrong under 2.75 and right above 2.85 on the December contract
If we test 1250 one more time soon in a simple 3 wave pattern and bounce above 1280, the bulls are back for gold but beware another test of the bulls patience will likely soon follow such a move and provide the best buying opportunity likely around the 1260-70 range
We are due for a significant wave 4 correction after an amazing run since mid september. Wave 3 appears to be ending in a smaller order wave 5 diagonal which would result in a significant drop 47.5 - 44.5 approximately. It is possible that there is no diagonal formation and instead we have a completed wave 5 of the third wave however this would result in a very...
For everyone trying to short this beast the past few weeks, i think the top is around 3.600. Then we can expect at least a significant ABC correction. The time frames and actual arrow placements are rough estimates only -- i won't try to trade them. Consider this a general road map and trade with caution. Nat gas is a b+tch!
The wave counts just don't make sense as a correction wave, so it appears we may be near the end of a bear market motive wave for Gold. If my wave count is right, it would make sense to have an ABC correction upwards or flat here leading into the fed meeting next Wednesday to determine the direction of the next motive wave. Given that this current bear market...