Elliott Wave 5.0 "Reboot"

Tuesday, February 16, 2016

Gold Daily Chart Review: Another Leg Up?

Gold did take a good tumble, leaving a spike in its wake.  Beside endings to major moves in one direction, spikes also occur just before corrections. This is especially true if a major top is not exactly clear enough, when it still is early in the game.  The US dollar seems to be completing a small 5 waves up so a correction should be due there as well.  

Spikes are the wicks in the candlesticks.  As you have noticed I never use candlestick, and the reason is because of the spikes. Also EWI never uses candlestick.  

What shows up on this daily cash chart is a huge gap that opened in gold.  I don't remember when I saw a gap open up with the cash charts.  In this case I would consider it very rare, but it helps to be bullish again. I have a small wave 1 possibly forming and that would be killed if gold dropped anywhere below $1291. 

I have switched the wave count to reflect a 1-2, 1-2 punch so if this were to become true then we should see much higher gold prices.  In all two more sets of 3-4-5 visible wave patterns should form.  

I will still keep the impulse in Micro and Submicro degree and will adjust once and if the entire sequence plays out.