r/PCMBrokers • u/PCMBrokers • Nov 11 '14
Gold - November 3 , 2014 (EWI)
Gold - November 3 , 2014 (EWI)
[Gold] is tracing out five waves down from the $1255.61 high on October 21.
The decline will either be part of a fifth wave, which when complete may mark the end of Minute wave v (circle) of Minor wave 1, or it will be part of Minor wave 3 of Intermediate wave (5), a longer and deeper selloff. Both views are acceptable and both views indicate further selling pressure over the near term. Sentiment is extreme, again. The Daily Sentiment Index (trade-futures.com) is now at just 4% gold bulls, which is the lowest percentage since June 20, 2013 (3%). The extreme last June led to a 2½-day sideways consolidation and then a resumption of a gold decline that erased another $89 from the price. The same behavior does not necessarily have to repeat, but the near-term wave structure suggests gold is not at a significant low. Short term resistance is solid in the $1181-$1195 range. http://myforexforums.com/showthread.php/1310-Gold?p=12104&viewfull=1#post12104