Gold Intraday Bull Ride Review

When I started to look at this gold intraday chart, I noticed that much of the pattern matches the silver pattern very well. I will need to change the degree at a later date but gold also contains  diagonal wave structures combined with small impulse runs.   Diagonal waves are mostly zigzags connected together, found in any 5th wave at every degree level, traveling in any direction.  When we suddenly think we are running into a flat then chances are good that the flat is connecting A5 and C5 waves in a zigzag.  I have never used the “WXY” system, as any “W” wave must be a zigzag. If it’s not a zigzag, then the chances are extremely high that we are in a diagonal wave 2 or wave 4.

Any asset class that is driven by fear will never last as constant fear can wear you out and therefore will never last over the long run.  All the mainstream reporters now see the bull market as they jump on board using all sorts of reasons why gold is still a strong buy.  I nice fast and deep correction will only shut the gold bull’s mouth for a short time. Back in early 2016 they all hated gold and gave all sorts of bearish forecasts. Yet gold did the opposite and started to soar ending close to $1375.

Now gold is close to $1340 with a potential impending correction. Sure gold can keep grinding higher in the short term, but surprise corrections are very normal in the commodities markets.

Commodities and the general markets are very different in wave patterns because gold is mostly driven by fear, which produce the insane up and down waves.  Stocks will always compete with gold, and the time between 1980 and 1999 is one prime example of this. Another more recent time that this competition showed itself was between 2011 and early 2016. It has happened many times in the past and will happen again in the future. The trick is to see the setup before it happens. Many times gold and stocks will run together, like in the 2008 crash, but they will also run together in a bullish herd.

Short term we may see a correction, but in the long run this gold bull market is not going to die, after all gold still has to soar past $1375. We are getting close but gold has to exceed this price level to confirm that what we had since mid 2016, was just a correction in a bullish phase.