Gold Bugs - You May Get Your Wish

As described on the chart, the wave picture looks unfinished to the upside for Gold. Eventually, I'm looking for a move above 1300 and possible as high as 1450. This would result in a larger degree of trend 3 wave move higher that began from the Nov 2014 low. So far, we appear to have A-B in place. We may be in the midst of circle C higher.

If that is the case, we should be able to stay above 1190 on price. However, a retest below 1160 means circle B is continuing to grind lower. There is a false breakout zone from 1060-1131 which means so long as prices hold above 1060, this wave counts suggests the possibility for 1300-1450. So the deeper Gold drives, the better risk to reward ratio trade there is.

It is possible the high in Jan 2015 was high enough to call an end to the correction and serve as our A-B-C, but the timing of the correction higher doesn't line up with the length of the down trend. Therefore, I am discounting that as a higher probability count. Bottom line, there is likely some unfinished business to the upside over the coming months/year.