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Wednesday, August 17, 2011

Gold - working it's way higher

We have broken above the ideal correction target area, but as can be seen we are "just" back up to the broken resistance-line (back testing), which easily could be the top of purple wave ii, if this is the correct count. To confirm this count we still need a break below important support at 1,720, which also marks the neck-line of a possible Shoulder/Head/Shoulder top.
Short term a break below 1,760 will add confidence in my count.
A break above 1,797 will weaken my count, but only a break above the ole top at 1,813.79 will confirm a move higher towards 1,836 and maybe even closer to 1,900, but one should trade this market with care. A bigger decline is looming.

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