Gold is at an important level

We are at a point where we will know very soon what gold will do in the next couple of months. Here are 3 possibilities:

1: Ending Diagonal

From the high a zigzag is complete, where C = A at 860.80. It is very much possible that this is only wave A of the wave 2 correction.



2: Flat Correction, wave C

Wave 3 should finish below or near 860.80. For wave 4, price has to stay below the red line indicated on the chart below. A triangle wave 4 along the rising trendline would fit nicely in this count. The break of this trendline should be voilent and wave 5 would be extended, unless this action is all just wave 1 of C.




3: Flat Correction, wave C

Same like scenario 2 but wave 3 is extended and wave 1 of 3 is nearly finished. Price will run higher (wave 2 of 3) before breaking the rising trendline with a wave 3 of 3.