Gold Sees Increasing Bearish Momentum
Gregor Horvat | May 30, 2016 05:47AM ET
Gold is turning down sharply for the last few weeks with increasing bearish momentum, so we see metal now making an impulsive drop from the highs. However, despite a five wave decline we still see market in temporary bearish movement since we are tracking a flat correction in wave II. That's a 3-3-5 structure that occurs against previous five wave rise that we can count up from 1046. That said, we remain bullish on gold and think that uptrend could resume later in June.
Gold, Daily
A Flat is a three-wave pattern labeled A-B-C that generally moves sideways. It is corrective, counter-trend and is a very common Elliott pattern.
Basic Flat Pattern:
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