In previous analyses we have shown you, that we were highly bearish about gold. However, in the Market nothing is static, everything is changing so we have to be flexible. Every trader has to be able to adapt to new market conditions. Here we will show you an alternative scenario of gold, which will come into play, if prices go above certain level.
As you can see, the decline from 1345 to 1257 could be counted as a zig-zag A-B-C correction. Wave A is a regular impulse, wave B is a running flat and wave C – an ending diagonal. Ending diagonals are tricky patterns, so they need to be further confirmed. In this case, the best confirmation comes at 1278 – the point, where the top of wave 4 of the diagonal would be taken out. If this happens, we would have to switch to this new count and prepare for higher gold prices, probably above 1345.
