Gold tricked us again allthough we are still bearish in the long run. Regardless of the new all time high! Gold is not ready for a short trade yet, but can be any moment. Long term targets as 700 are still very likely.

Elliott wave forecast

Gold did it again! It showed a nice short setup after which it broke into new highs. It is part of trading and it proved why stop losses are the key to success. The overall Gold forecast is still bearish though. Many traders will be eager to take long positions because of the new all time high, but it is a bull trap. So be carefull!

There are two elliott wave scenario’s possible at the moment. Both have some room to the upside but will crash hard after a final top is set. The left part of the gold charts shows us the preferred scenario since 2009. The intermediate Flat is about to start its final C-wave in this scenario. This wave will be impulsive and therefore fast and devastating. The alternative scenario gives the same forecast. Gold is forming an ending diagonal starting in October 2008. Once the ending diagonal is finished, the ensuing crash will be hard.

Targets for both Gold forecasts are 700.

Gold chart