Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Gold Should Be Nearing A Major Bottom

IMG Auteur
Published : December 06th, 2012
465 words - Reading time : 1 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
FOLLOW : B-wave Fibonacci Gold

 

 

 

 

The recent rally in Gold took the metal from the 1620’s to roughly 1800 per ounce before the ensuing corrective action began. Back around October 20th we warned our readers about a likely “ wave 2” correction in Gold and we had several reasons for that warnings. One of the biggest concerns we had was that the sentiment surveys were running very hot at the time. The percentage of professional advisors polled that were bullish on GOLD was 88%, with 7% neutral and only 7% bearish. Elliott Wave Theory is the foundation of our work, though we are sure to mix in other clues and elements to “fact check” our reads. When you see sentiment readings that high, coupled with a $180 rally leading up to those readings, you can begin to look for clues of a top.


The other warning signal we noted was the MACD signal which had crossed south and was a topping warning signal to get out of GOLD for intermediate traders. At the time, we surmised that a “wave 2” correction in sentiment, and therefore price was required to work off the overbought conditions. The first level attacked the 1681 areas roughly and then a “B” wave rally to 1751 roughly ensued. Wave 2’s are made up of a 3 wave pattern, A down- B up- and C down to finish. It appears that GOLD is now in the final C wave down in sentiment to complete the correction pattern.


Clues for the “C” wave include the Goldman Sachs quasi-bearish 2013 GOLD forecast that came out today. In addition, the media attempting to explain the drop in GOLD as being related to stronger than expected economic indicators or fiscal cliff negotiations, neither of which make any sense at all.


We expect GOLD therefore to complete the C wave correction at 1631 or 1681 specifically. There are Fibonacci fractal relationships to the first leg down (The A wave) at those levels, and they tend to repeat themselves in terms of crowd behavior. At the 1681 level we have the C wave equal to 61.8% of the A wave amplitude. At 1631 we have a more traditional C wave equal to the A wave. In either event, look for a washout low in GOLD occurring at anytime near term, and for traders to start scaling in long.


Below is the GLD ETF chart showing the two most likely bottoms for the precious metal, one of which already qualifies as of today’s trading:




Consider signing up for our free weekly report at www.MarketTrendForecast.com or take advantage of our 33% coupon by signing up today for SP 500 and GOLD forecasts updated on a daily basis.


David Banister

The Market Trend Forecast


If you’d like to receive free weekly reports, please check at www.markettrendforecast.com 

 

 

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
He Is Risen… But For How Long?
24 JanJim C.-1
J: If people would take the time to read Kunstler's archived articles here they would see fully what his agenda is -- that of Government c...
He Is Risen… But For How Long?
24 JanJ.1
I was thinking the same thing Jim C, when I read this article. The old Progressive bias showing through once again. And it is all Progressives, n...
He Is Risen… But For How Long?
24 JanJim C.1
Kunstler is the old voice of Progressivism in America, an old voice that wants Government to take control of us freckles individuals...and by contr...
The “war on cash” has nothing to do with fighting crime
23 Jansam_site
While your points are valid, you should remember that in the 2008 crisis, there was a run on CD redemptions and that could have led to a stamp...
Short Tesla Motors Inc? Ivanhoe Mines Ltd CEO Robert Friedland and ...
20 Janneville
I wholeheartedly agree with Mr Robert Friedland ....we see the stock at $40 as technically it is in the same chart pattern as Fannie Mae was before...
The Cheeto Cometh
17 Janaccording
"Cheeto-head sonofabitch" sounds like a term of endearment,billy boy.
The “war on cash” has nothing to do with fighting crime
17 JanMike.S.
Another argument against a cash ban being to deter criminals is that I believe more money is lost by fraudulent withdrawals from bank accounts than...
The Cheeto Cometh
17 JanCESSIE
I EAT CHEETOS FOR BREAKFAST! WHAT'S FOR LUNCH? LOL
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS