If you’ve been following me for the last few years you know that since Gold was trading below $1.100 I was calling for a major low that would come and a major reversal targeting $1,500-$1,600. Although my timing was not the best during this entire upward move, I have managed to stay long during most of the rally….Let’s get to business now and look at the short-term Elliott wave count I have for you…..last week I was confused and sad (I’m a dollar bull). Why because of this…..
The wave structure in Gold was impulsive. This was a very bearish sign. At best bulls would see a strong bounce towards $1,330 and then at least 5 more waves down maybe even below $1,200. However today’s new low changed this wave count to a corrective one.
The new low made today has given us so far 11 waves….impulsive waves never consist of 11 waves, only 5-9-13-17 waves. Corrective waves on the other hand consist of 3-7-11-15 waves. So this decline although it might extend a bit lower, is still considered a corrective one and Gold will reverse to the upside and produce a new high.
I remain longer-term bullish Gold and still consider this pull back as a great gift to Gold bulls. Thank you for taking the time to catch up on my thinking.