With this upward trend in progress, many may think that the bull market is back. They may even be
contemplating finding a position to jump onto this bandwagon. Well, it may work, but buying when it already has made 5 moves in one direction is what I call being very late to a party.
As much as I would love to tell you that gold is instantly going to the moon, I can't as this pattern is choppy and not a single great looking impulse has formed. Since the December, 3, 2015 bottom, all major waves overlapped into a previous critical wave. At worst this could fit very well into a triangle like 4th wave, and at best it can fit into a leading "A" wave.
If the decline is very "corrective" looking, then this is good as gold will always push higher from such a decline.
Will any of the two bottom trend lines stop gold? Many times it will just drop right through those lines like they were not even there. Only time can help in clearing that up. Right now it looks like a small, declining impulse wave is in progress, but it is still too early to see if it has legs.
The January low for Gold is not very certain as well as this price level can still be broken very easily.