Thursday, May 20, 2010

Gold ~ Elliott Wave Count 20 May 2010

Gold had a massive rally in the past months making new all time highs. Most recently it corrected a bit (Cramer was recommending to buy Gold right at the top so there's the reason... : ))) but the Elliott Wave structure does not look completed yet:

We could count a completed five wave impulse from the Primary [4] low but imo it's more likely that we're only completing Intermediate wave (3). So we may touch 14-1500 before finishing Primary [5] and a bigger correction unfolds.

If Gold falls below the Intermediate (1) high at 1016 the impulse that started ten years ago will have finished. A short and sharp correction down to 700-1000 should occur followed by a huuuge rally exceeding today's price many times over.

As opposed to my Elliott Wave count for Silver, Gold is already at the end of Primary [5]. Intermediate (5)'s and Minor 5's were almost always extended as well though so may be this won't conflict.