Well, folks, in the last week I printed out many charts like this and switch back and forth to line type settings.
The gold rally ended Sept, 5 at $1555. Is $1555 going to hold for the high of the year, will gold still soar like many of the talking heads say it will.
At the gold peak, many aggressive gold forecasts were made, just like they have done many times before.
I think gold is fooling us with its bullish pattern while silver showed us it couldn’t care less. By making the 2011 decline into diagonal decline, makes the 2015 bottom only a wave 3 in Intermediate degree.
Readers know I have done this before and a switch works best at the turning of a month.
Gold needs to show us another zigzag decline in Minor degree which could take more than a year and it moves the Primary degree “A” wave into the future as well.
Dropping the gold bear market down by just one degree sends the Primary degree “A” wave back into inventory. Gone by the stroke of a pen.
There is no price support here because I question support for what? Just because gold had a very bullish run does not mean a true bull market is in play or has started!
I’m sure the day will come when gold crashes below $1400 again, but any move now has to show us that a zigzag 5th wave in Minor degree is going to start.
We have had about 8 strong bullish rallies since the 2011 peak and most of them failed and when it wants to gold’s price could drop $50-$100 at a time.
I can make the silver wave count work better as a 4th wave decline, so silver may end up giving us an early clue when the “New” “A” wave in Primary degree appears.