Gold Intraday Crash Review

Since the October bottom gold started back into a rally, (sort of). This rally was so choppy that there was no way I could count any clean impulse waves, except for a few very small 5 wave moves.  The invisible top trend line touched many peaks before gold started to crash  last night.  The chance that this is a diagonal first wave can still handle some downside,  but gold must not break to new lows for this work. We could end up with a double bottom or even a bit lower, but then the entire decline can work as a flat.

Flats have a real chance of pushing the next leg up dramatically, which could take the rest of the week to play out. The Thanksgiving Day holiday is this Thursday,  and I usually plan no updates during many of the holidays.  All this looks very bearish, and in the short term gold may just keep showing us bearish moves that we don’t like, but in the long run any gold bullish world is still to come. 

I’m sure gold is displaying an inverse relationship with the general stock markets, but once they head down, the run to safety can happen. The US dollar just pushed to another new high this morning, so that alone could’ve been the cause of gold crashing. These types of crashes are not really a concern, as in a bull market, they are just part of corrections.  The majority cannot tell the difference, as they only care if something goes up or down. 

The $1375 gold  price level has not been achieved and if any “C” wave bull market is still to come,  then this $1375 price level must get retraced by a wide margin.

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