The wild ride last week sent gold up, then down again. This does not change any bullish outlook I have at this time. The impending Donald Trump presidency had virtually no effect on any large degree patterns, that I'm presently working, except for some short term moves which is normal most of the time.
We see the long spike pointing down, and if we are looking, the USD and stocks are pointing up!
This is a classic setup for a potential reversal that is not just a short term trip, but a longer move that will force all those bears to completely reverse their positions.
Of course not too many traders make catching a falling knife a habit, as they are fearful that much more downside is to come. Of course we become fearful because we are betting with too much of our account net cash, and fear of losing money overrides all other fears, even though we are in a potentially very big bull market, yet to come. We may see a bit more downside, but we are at about a 48% correction at this time.
Most gold related stocks also saw about the same percentage of a decline with their corrections.
We also have a fantastic H&S pattern being setup, and we all know that they can be very bullish indicators. How far a Minor degree "C" wave bull market will go, is never perfectly clear, in the beginning of a strong reversal, but I use 2-3 different calculations to come up with a potential $1500-$1600 price target at this time.
Remember, that above present prices, there are protective buy stops always hanging around, which can turn all these gold bears into instant gold bulls.
Donald Trump took the heartland of the USA, as the entire west coast and many states on the east coast voted for Hillary. I got a big chuckle, how all the expert surveys proved to be wrong. Sounds like what stock market analysts do all the time.