Elliott Wave 5.0 "Reboot"

Thursday, January 14, 2016

Gold Intraday Crash Review: Is It Just Another Short Term Bottom?

Well, my impulse wave count is now tossed into the trash can but that does not mean the gold can go higher if the 5th wave diagonal is still to come.  
The worst case scenario we could only see a little blurb and then gold resumes its decline. Of course, then it could also break new record lows at the same time. 

The trend lines I am using are parallel to each other which turns out to be an 43 degree up angle.
Corner to corner of the chart above is about 38 degrees up angle. Any printouts I do make are always consistent to 8x10 full landscape which still matches the 38 degree up angle. I will never do any wave counts on a postage size chart. This is just a personal thing I got used to doing as I spent over ten years doing all wave counts on printed charts and a ruler. I see it as providing consistency in size and you can eyeball a pattern quicker. After all you have to see the pattern before you can count it. 

If this does lead to another newer high, then we could also be stopping at another "A" wave as this could be part of a bigger zigzag. Either way they're far too many overlapping waves right now, to get more bullish on gold than just for the short term. 

I would love to tell all my readers that gold is going to the moon tomorrow or even next week, but the big wave count is not resolved the way I would like them to be, even though I have many diagonal patterns in the big gold bear market.  Gold's bullish consensus is also not low enough to generate a major bull market so we may have to put up with these will gyrations for some more time yet.