Gold - Bears Probably Collecting Pennies In Front Of Bulldozer
|The grey trend channel is still valid as we publish this. There is no sufficient evidence that the trend has ended already. However, another down sequence transforms the entire Gold Elliott wave structure into a perfectly complete impulse of minor degree. Couldn’t wave (v) just simply extend further? Price action could certainly extend further but it is unlikely that bears will get very far. Sentiments and position gauges show great conviction that precious metals will head lower. Such readings have been a good counter-indicator at similar junctions historically. This picture gets supported by strength indicators. Momentum has been diverging to price. The selloff is losing steam – yet another piece of evidence that suggests a significant bottom nearby.
The bottom line is that we expect the major reversal to happen very soon. Very soon means as early as after one more spike to the downside. This could happen within the next few trading days already.
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