{"id":23829,"date":"2011-09-14T10:47:50","date_gmt":"2011-09-14T14:47:50","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=23829"},"modified":"2011-09-14T10:47:50","modified_gmt":"2011-09-14T14:47:50","slug":"gold-heading-to-2350-per-ounce-after-4th-wave-consolidation","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/09\/14\/gold-heading-to-2350-per-ounce-after-4th-wave-consolidation\/","title":{"rendered":"Gold heading to $2,350 per ounce after 4th wave consolidation"},"content":{"rendered":"
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David Banister- www.MarketTrendForecast.com<\/a><\/strong><\/p>\n<\/div>\n<\/div>\n

In my most recent few forecasts for subscribers and public articles I\u2019ve discussed a major correction in Gold, and it dropped $208 within 3 days of that forecast several weeks ago as Gold traders will recall. Last week I wrote about further consolidation being required in what I\u2019m seeing as a either 4th wave likely \u201cTriangle Pattern\u201d that will consolidate the 34 month run from $681 to $1910 into August of this year, or a 3 wave \u201cA B C\u201d pattern. We are right now in some form of C wave, it\u2019s just a matter now of confirming if we are going to get a \u201cD and E\u201d wave to follow, or the C wave drops lower before we bottom.<\/p>\n

A Triangle pattern serves to let the \u201ceconomics of the security\u201d catch up with the prior large movement upwards in price. In essence, the crowd behavior pushed the price of Gold a bit too high too fast, and this consolidation pattern lets the fundamentals catch up to price action. We had a parabolic move I discussed many weeks ago, and those always end badly to the downside. The $208 drop in three days is a typical reaction to a spike run like that. At the end of the day though, I had been forecasting what I call a \u201cWave 3\u201d top and was looking for a multi week or multi month consolidation pattern before Gold could move higher.<\/p>\n

Let\u2019s examine what that triangle projection may look like. They take the form of 5 waves, or what we can call ABCDE in a pattern. The biggest drop is always the \u201cA\u201d wave, and that was 1910 to 1702 in 3 days or less. The next biggest drop is the \u201cC\u201d Wave, and that was 1920 to 1793, noting it was a Fibonacci 61.8% drop relative to the A wave. In other words, each successive wave down in the 5 wave triangle is smaller. This is due to the sentiment finally shifting and the trading patterns moving from people chasing the hot sector or stock or metal, to the long term investors accumulating the dips.<\/p>\n

If we end up consolidating in a \u201cTriangle\u201d, then Gold should end up looking something like the below pattern I drew, with a target of $2,350 per ounce many months out:
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The other pattern we are watching for at TMTF is the ABC Correction pattern. We had the A wave down to 1702, which corrected 50% of the move from 1480-1910 in 3 days. Rarely do you get a major move down like that and not get some type of \u201cre-test\u201d of that low, but because the fundamentals for Gold are strong and getting stronger, we are favoring the Triangle pattern still as most likely. With that said, there is a fat and juicy \u201cGap\u201d sitting in the chart around 1660 on Gold and dropping down there is what a lot of traders are watching. If that were to fulfill, then we will see an ABC correction ending around $1643, and then Gold will begin another multi month rally to new highs:
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At TheMarketTrendForecast.com I teach people my crowd behavioral methodologies and give them reliable forecasts in advance so they can be prepared with their investments. Consider working with us and following the SP 500, Silver, and Gold by going to www.MarketTrendForecast.com<\/a><\/strong><\/p>\n

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 <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

In my most recent few forecasts for subscribers and public articles I\u2019ve discussed a major correction in Gold, and it dropped $208 within 3 days of that forecast several weeks ago as Gold traders will recall. Last week I wrote about further consolidation…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-23829","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/23829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=23829"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/23829\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=23829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=23829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=23829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}