Today, gold nearly hit its Head & Shoulders target by making a low of 1321.50. I believe that it has yet to complete its impulsive Intermediate Wave (3) decline and may do so by Thursday, day 56 in its Trading Cycle. That leave room for a 2-day bounce into Monday and a final decline into the Orthodox Broadening Top target of 1155.00 by the end of next week. The alternate view is that gold may have already made its Intermediate Wave (3) and (4) moves and may be ready for the plunge forthwith.

The long view (weekly) shows the corresponding supports as they were made on the way up. The support for the bottom of Intermediate Wave (3) is 1309.10, a near-perfect hit if gold lands near there for its Wave (3) low, the target for its Head & Shoulders formation.

The next support is at 1155.60. Again, a near perfect hit for Intermediate Wave (5) as we compare the Broadening Top target. This may be the bottom for Primary Wave [1] of Cycle Wave c of Super Cycle Wave (IV).

I have yet to figure how the Cup with Handle formation fits in, but we’ll leave it on the chart for future reference.

This may set up a whole new set of patterns to watch as gold makes its Primary Wave [3] panic decline, coming sooner than you think!

Regards,

Tony

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Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.

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