Price followed the count very well. The triangle had smaller waves D and E than i expected, but nonetheless price went lower, and how ! The big support level around 1550, which held for the last 2 years or so, was broken causing a very big and quick sell off. Elliott wave analysis tells us that this could very well be a wave 3 inside a wave C, alternatives are possible, but the direction is clear. 1400 remains the target, after that price could slow down and rebound to retest the big support turned resistance around 1550 in the form of wave B. Yes, this means i believe gold is in a long term bear market and could go as low as 1000 in 2014/2015.
WD Gann Trading Rules
2 days ago