Elliott Wave 5.0 "Reboot"

Wednesday, February 3, 2016

Gold Intraday Review: Soaring to the Moon?

Gold is on a great run as it looks like it is also in an extension. My dual parallel trend lines help to define a smaller channel, and when it crashes out and far away from these lines, then chances are good a degree change is also in progress.  At the top we have what looks like a flat type pattern so that could mean this run is not coming to an end today or even this week. 

What I will be looking for in the coming days is that the pattern changes to a diagonal, which usually indicates a radical shift in direction is still to come.   Any rally that we can see beforehand that forces all  the traders to change positions is what I like to. Some call this swing trade, but that is too vague as all trades can be called swing trades. 

There are virtually no traders that can stand a bearish counter rally like gold may be on because buy orders are triggered all the time as gold rises. 

The US dollar has plunged which gold has reacted perfectly too, but silver is lagging far behind. Gold stocks are reflecting gold better that they have been, with the HUI soaring past some ugly corrective patterns. 

If the bigger 5 wave sequence in Subminuette degree is true, then a three wave correction is still to come.  If this last 4th wave sprouts or develops a triangle then we are assured that the gold run is coming to an end.  As I post gold is already at $1145 which is close to my top trend line. 


Updated 12:05 PST

Gold spiked to the top of my parallel trend line at $1145 so a strong correction or trend reversal should happen.  This is one of the longer spikes created so when I see that, then it's time to change our thinking as well.