EWM Interactive | Nov 23, 2014 12:12AM ET
More than two weeks ago, on November 6th, we published an article, called “Gold With More Than One Option” . In this material we gave you two alternative counts of gold, both of which suggested for a corrective recovery. The only difference between the two scenarios was in the depth of the anticipated retracement.
Here we will focus on the alternative with the more shallow rally. The chart below will show you our forecast the way it was published:
From this distant perspective, gold prices could always continue higher. That is why, in order to support the validity of this count, we have to go deeper into the wave structure. The chart below will give you a closer look into the price action in the black rectangle.
Furthermore, note how prices began slowing down when approaching the 61.8% Fibonacci level. If this is the correct count, gold should make another swing high to finish the diagonal, probably around $1210. Then we should expect the resumption of the larger downtrend, which could lead the yellow metal to our big picture target of $1100 .
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