Elliott Wave Analysis of Gold 2nd February 2010

A correction can sometimes be 100% of the prior move, and this is what we seem to have got in Gold. Take a look at this chart where the Elliott Wave count labels are clearly marked. Gold has retraced 100% of its prior rally and has embarked on a strong rally that we have been patiently waiting for (see update of 15 jan 2010). This move could potentially develop into a third wave of the final fifth wave in the larger degree, (or alternately, if one assumes the top has already been posted at 1226, this will be a “C” wave). In either case, we should expect the rally to continue to at least 1194. Of course, if I am completely wrong in my counts, we will have a disastrous sell off, but currently, I see no reason to worry about this, except to acknowledge that one could be wrong!

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