Gold

Gold, in the monthly frame, is in the process of correcting the prior advance in five Primary waves to the September 2011 peak of 1923. This correction will ultimately amount to a partial retracement of the impulsive advance. Since the peak, prices have traced out an impulsive sequence down, that remains in its late stages.

The overall decline so far, could be still-developing Primary wave A, which is only initial part of a three-wave corrective sequence of one larger degree, that is not yet complete.

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Gold

Gold’s current bear market :

After completing an impulsive sequence of the primary degree five waves up in September 2011, Gold has been retracing in intermediate degree five waves down – as a primary degree wave A.

As a bearish alternative, wave (5) of the wave A could be extended through the level of 950, where establishes an equality ratio between the waves of (5) and (1) – a common relationship.

Gold

After an impulsive five-wave sequence up of the cycle degree in September 2011 , Gold is likely to correct in a three-waves sequence(or a variation).

An explanation of the Gold’s bear market :

The ongoing five-wave sequence down from the peak in 1923 , which up here has lasted 42 month, may be just as an initial subsequent of the great correction of the same cycle degree. It could be considered as the wave A of the primary degree.

In a bearish view on the monthly chart frame, the fifth wave of the five-wave sequence A(circled), could be extended to lower levels.

Based on the bearish view, an expected fibonacci target for the wave (5) of A(circled), could be considered on the 950 level where establishes an equality ratio with the first wave.

The ultimate target for the bear market, could be in the span of travel of the previous fourth wave of the primary degree, around the 398 area.

Gold

After an impulsive five-wave sequence up of the cycle degree in September 2011 , Gold is likely to correct in a three-waves sequence(or a variation).

An explanation of the ongoing Gold’s bear market :

The ongoing five-wave sequence down from the peak in 1923 , which up here has lasted 42 month, may be just as an initial subsequent of the great correction of the same cycle degree. It could be considered as the wave A of the primary degree.

In a bearish view on the monthly chart frame, the fifth wave of the five-wave sequence A(circled), may be extended to lower levels.

Based on the bearish view, the expected fibonacci targets for the wave (5) of A(circled), could be considered on the 950 level where is equality ratio with the first wave, and 886 level where is 0.618 time of waves (1) through (3).

The ultimate target for the bear market, could be in the span of travel of the previous fourth wave of the primary degree, around the 398 area.