Aleksandar Vichev
EWM Interactive
Not so long ago, on July 15th, we showed you the chart you are going to see below, saying that we have to expect more weakness from gold.
We still prefer going with this count, since it is the most obvious one. However, there is another very tricky scenario. We do not fancy it, but we have to warn you about its existence, so you can weigh up the pros and cons and make the best decision for yourselves. This alternative count of gold is given on the next chart.
According to this count, we will have to wait a little more before we can call the big, one-year-old triangle finished. If this is the correct count, then this impulsive decline from 1345 to 1291 is not the resumption of the downtrend, but just a wave “c” of an expanding flat wave B correction. This would mean, that wave C to the upside has just begun and in this case, prices could go up to the 1360 – 1370 zone before reversing to the downside… Told you it is tricky, but it is always better to have an idea of how the Market could surprise you, than just being surprised.
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