GOLD again

gold july 22 2015

The triangle idea is a little off because, as we pointed out, wave b (here shown as a) is fairly clearly a five wave move which disqualifies the already awkward looking triangle. More in line with the stocks, see for instance ABX would be the diagonal or wedge concept. There each of the five waves, both up and down should be 3’s. This could be the last, or 5th wave of such a structure. Equality, not an essential feature of this type of wedge, would suggest a low at around 1065-75 . This would be very close to the 50% and would allow for one more drop that I think is required to finish this leg down. Gold is already down about $15 which might indicate that we are in a minute 4th wave triangle.