Elliott Wave 5.0 "Reboot"

Thursday, February 11, 2016

Gold Daily Chart Review: Afterburners Kicked In!

As I post gold is still on a wild ride that all traders wish they were part of.  Gold is approaching $1260 which is a far cry from the $1050 base it started from. This just goes to show how gold can perform and surprise the majority most of the time.   Contrarians have been waiting for a move like this for a long time, so if this gold run has more legs, they will be the big winners.

I'm going to explore other wave counts, but this rally has too many overlapping waves from when it started, so I have to keep two or three wave counts going.   I will never post several wave counts in one chart as then I can make too many excuses and always turn a bad wave count into  a good wave count.

A correction is due as now our spike is getting longer and longer, and if another big leg is to come, the correction should contain a flat of some type.  A net 61% correction would take us to the $1130 price level, but it must be finishing an "ABC" type crash by then. 

Gold stocks also jumped another leg up which is also creating a huge spike. 

This gold run has more to do with fear investing than a real bull market so if fear just dips a bit, gold could take a strong hit.