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Gold sticks to plan, no news needed

Six days ago, on July 9th, we published an article about gold, where we were expecting one last wave to the upside, followed by a reversal to the south. This forecast was based on the chart below.
gold 9.7.14.
There have been plenty of news and events, which many fundamental analysts used, in order to explain gold’s price action, after this forecast was published. But how is this useful to any trader, when it is only a retrospective explanation? It is not. That is why we prefer using the most advanced form of technical analysis – the Elliott Wave Principle – because it allows us to predict future market swings with a high enough success rate. On the next chart you will see what happened to the gold market after our forecast.
gold 15.7.14
If we make the “before and after” comparison, we will have some difficulties in spotting the differences. As visible, gold broke that wave B triangle and reached as high as 1345 in wave C. But the yellow metal was unable to hold that bullish momentum. Soon after this new high was reached, just as expected, gold began declining. In fact, yesterday – July 14th, was the biggest single-day drop-off in 2014 so far. And guess what, the mainstream experts and fundamental analysts were trying to explain to you why gold fell. But if you have been waiting for their explanations, then this 50-dollar-sell-off opportunity is all gone for you, so do you really care?
This situation shows you how you can use the Wave Principle to form your own independent opinion, before the wait-for-the-news-majority has any clue.

Now, the decline from 1345 is clearly a five-wave impulse. According to the Theory, after every impulse, a correction follows. That is why we expect a three-wave rally now for wave (2)/B, before the downtrend resumes in (3)/C.

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