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Gold with two alternatives

Gold has started its consolidation (sideways movement) in July 2013 and it seems to be forming a triangle, which usually takes time to develop and can be difficult to play out, because usually one of the 5 waves forming it, is a complex one. Waves “D” and “E” should also have a 3 wave structure (simple or complex zig-zag).

gold 1

It seems like we are currently in wave D of the triangle. On the chart below you can see that we already have two waves for W and X. If this is the correct count, we should expect to see a sharp reversal to the downside for the third leg – wave Y down, which should also consist of three waves.

gold 2

Since the Wave Principle gives us only probabilities and not guarantees, we are giving you an alternative scenario on gold, considering a flat correction instead of a triangle.

gold 3

A flat correction with an ending diagonal for wave “C” is a regularly spotted situation and that is why we chose this scenario. The ending diagonal should consist of 5 waves with a zig-zag sub-structure. If this is the correct count, gold could reach above the previous major top at 1435$ per ounce, only to start falling again from there.



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