In today’s video we present Elliott Wave Analysis of the yellow metal which has reached 100% extension down from 1255 peak. Trend is down but it’s in an area where initiating new short positions is a dangerous proposition. Analysis based on market correlation allows for another push lower toward 1189 – 1184 area to end the cycle and show a decent 3 wave bounce. We like to be on the sidelines at this stage and would use X wave bounce when seen as a selling opportunity in 3, 7 or 11 swings. This view would remain valid as far as pivot at 1255 high remains intact during X wave bounce. Once X wave correction is complete, next leg lower could take us toward 50% retracement from all time lows.
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