Gold Intraday Crash Update

Since last Friday the 8th gold has backed off with vigor. It was not a crash which usually produces spikes, but this decline has a nice roll to it that looks like it was made to order for a declining impulse wave count.   Any 5 wave decline is a pointer that more downside is coming and I don’t think this decline is done just yet.

Of course that “ABC” sideways pattern (expanded) would also work for a single zigzag.  A wild correction up and then down again would help to confirm that we are just in a bull market correction.   Gold has not stopped at any significant previous low, so the $1323 price low has no real meaning at this time.

From the recent peek gold dropped a Fibonacci $34  and has now started to rally. Between $1305 and $1300 we have the first real bull market low, so gold could still hit this price range.   Since $1300 is such an important psychological number, it would not surprise me if gold actually dipped below $1300! That would send the technical traders into a mini panic, when the $1300 price level doesn’t hold.

No sooner that gold falls below $1300, a reversal sends gold soaring back over $1375.  I mentioned how difficult it would be for gold to break out, but in due time I’m sure gold will soar again.   Since every peak in the gold price can produce a questionable wave count, we may have a correction that may take much longer to play out than we may think.

When we do end with a fairly large spike to the downside, then, that would make me a happy camper.  As long as we continue to get “ABC”corrections to the downside, the gold bull market will remain in tack. “ABC” corrections produce the higher lows which is the conventional description of a bull market.