A correction can sometimes be 100% of the prior move, and this is what we seem to have got in Gold. Take a look at this chart where the Elliott Wave count labels are clearly marked. Gold has retraced 100% of its prior rally and has embarked on a strong rally that we have been patiently waiting for (see update of 15 jan 2010). This move could potentially develop into a third wave of the final fifth wave in the larger degree, (or alternately, if one assumes the top has already been posted at 1226, this will be a “C” wave). In either case, we should expect the rally to continue to at least 1194. Of course, if I am completely wrong in my counts, we will have a disastrous sell off, but currently, I see no reason to worry about this, except to acknowledge that one could be wrong!
7 Comments
Hi Ramki,
I remember you Gold call in Feb and after yestardays rise came back to take a look at it… fantastic call… So can we assume that now we reached the target, we can see a good correction..
–Anand
Thanks. Let us take a fresh look next week about where this move in Gold is likely to end.
http://www.youtube.com/watch?v=i_XosYwN-5Q
My take on elliot wave and gold from my video newsletter
Thank you, Gary, for visiting Wavetimes and for your post. Readers, Gary Wagner is a well-respected technical analyst, and is the co-author of “Trading Applications Of Japanese Candlestick Charting” a John Wiley publication, and featured in “Trading Systems: Secrets of the Masters “ A McGraw Hill Publication”
i think gold should start with the down-leg c . what do you think about the 5th wave in the b. how long could it take before the down leg is starting?
hi ramki
whats ur view on gold. it has touched a recent high of 1265 and is hovering near it.which wave do you think is this. I see that it has gone from 900 to 1265 after a fall to 1100
Hello Sonia,
Think Gold will remain bid in the near term but if it reaches 1375 levels, I will get really anxious about when a big correction down will start