Good evening to one and all.
UPCOMING RISK EVENTS:
USD: Personal Spending m/m, Unemployment Claims. EUR: German Prelim CPI m/m. GBP: Current Account. JPY: N/A.
My Bias: Long to a new all time high above 1827. Wave Structure: Impulse structure to a new high. Long term wave count: wave (3) above 1666.
GOLD accelerated lower in a possible wave 'iii' brown today, This final decline should create a clear five wave pattern and carry into support at about 1303 at a minimum.
The main resistance for the long term count lies at 1366, And this is the confirmation point for the major rally to come.
On the 4hr chart, The 50% retracement of wave [i] lies at 1297, And the 61% retracement, at 1282. This forms a nice band of support which should hold wave [ii].
Lately, I have been talking about the potential for GOLD over the longer term, But I have not yet put a figure on it. Remember, This will be a bull market rally, and the bull market could take the price into the $5000 region before it completes over the next couple of years.
This pattern in the GOLD price is reminicient of the lows of 252 way back 18yrs ago, the price then embarked on a 750% rally over the following 10 years!
At this point I am only interested in the bullish potential after this decline, And as you can see, the potential is huge!
In the short term, I want to see the completion of a five wave pattern in wave (c) blue. That will close out the larger correction in wave [ii] green. And then, The way is clear for wave [iii] to begin.
Tomorrow; Watch for a sideways correction in wave 'iv' to begin, This must complete below 1340.
Read more by Enda Glynn