Here is a great example where one would try to catch a falling knife from an Elliott Wave perspective. We don't know if a strong bottom is going to happen but these types of crashes can produce amazing rallies. Just as fast as it has dropped it can rebound dramatically as well. Especially if stocks take a hit worldwide and investors seek a safe-haven place to run to.
It sure looks like a "C"
wave crash, and any other time I would have a lot more confidence in saying it. I look at the potential zigzag crash from the top as gold would still need to retrace this move.
On the 15th and 16th we had a very ugly bottom which is now confirmed as being a bear market rally because it has been completely retraced, and some.
I just can't believe that this gold bull market is finished as we could have just finished a diagonal 5th wave. Only time will tell now.
I recently have talked about catching a falling knife as that is a conventional term that most investors will never buy
on, But from an EWP perspective, it is always the best place to take a long position.
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