Wednesday, August 24, 2011

Gold : Lonely Bear At The Top

It seems that in the latest weeks all the remaining bears have been converted into bulls. I've heared predictions of gold going to 20.000 $/ounce. It is known that at major tops, the majority of the players are bullish and believe price will go much much higher, the current situation certainly fits this description. I believe that this strong, furious rally is the last wave of strength and will be followed by an equally impressive decline. The EW count remains the same as i've had for a long time but went higher than expected. This is probably because wave Y of Y of 5 in the expanding ending diagonal is an flat. And both waves Y are 150% of their waves W, this is less common but then again a big top like this one isn't very common either. Another thing i want to point out is that gold and stocks have moved pretty much together for the last 2 years. Stocks have started what seems to be a big downtrend. Will gold follow? I believe it will.



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