Elliott Wave 5.0 "Reboot"

Saturday, April 9, 2016

Gold Daily Chart Review: Short Term Bull Trap?

Gold refused to get up and go like an impulse should, but has acted slow with too many overlapping waves in the last month or so. This is usually not a good sign, especially in the short term.

The decline we have had from the top, sure fits well into a diagonal 5 waves, and at best it may be part of an expanded 3-4 wave.   Gold has to make one more decline to fit into the 5th wave and that would take gold down well below the $1210 price level, before another bullish scenario could be set up! 

Without the expanded wave top we could land on another "A" wave, followed by a "B" wave bullish cycle.  Of course, this would be followed by a strong decline with the tail end of a "C" wave.  

Either way the gold bottom from the beginning of 2016, had one ugly start, which is a big clue that this entire gold run is a fake.  Silver is also telling us a fake story so it is not just gold that is doing it. 

We are not in a secular gold bull market as much as we may want to believe that gold is but gold is giving us smoke and mirror signals due to its fast move up.