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Gold: Prices Just Crossed an “Absolutely Critical Juncture”
EWI’s Metals Specialty Service reveals whether today’s drop is the start of a larger decline
By Nico Isaac
Tue, 08 May 2012 15:15:00 ET
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On May 8, gold prices woke up on the wrong side of the bed -- and then promptly fell out of said bed. Just after 11 am, the precious metal experienced a $40-plus intraday plunge that took prices to their lowest level in 5 months.

Dramatic moves like this one raise a really good point: Gold is widely perceived to be the ultimate, can-do-no-wrong financial "safe haven." But it's only safe so long as you stay in front of its volatile twists and turns.
 
And, in the days leading up to gold's recent plunge, EWI's Metals Specialty Service editor Mike Drakulich did just that. In a May 7 Metals Specialty Service intraday update, Mike foresaw gold prices nearing "absolutely critical juncture" and opened the floor to a bearish move via this insight and chart:
 
"Gold remains on the 'Cliff Edge,' as the 1625-1640 critical support area undergoes a severe test… Either we break below this area and accelerate sharply lower and perhaps embark on a rapid decline… or we bottom. A sharp and sustained decline below 1623-1625 adds considerably to the bearish odds. Let's allow the market's price action at this critical price area to determine the likely outcome."
 
 
 
 On May 8, prices did, in fact, break through critical support to grease the day's decline.
 
The question now is: Is this drop the start of a larger decline, or a brief correction before prices resume their climb to new highs?
 
Get the complete, objective details today in EWI's trader-focused Metals Specialty Service.
 
 
Metals Specialty Service Editor Mike Drakulich uses the Wave Principle and 30 years of market experience to help you replace the endless market possibilities with higher-confidence probabilities.
 
Subscribe today to get Mike's expert intraday and daily Elliott wave forecasts complete with key price levels, targets and valuable insights for gold, silver and other major metals.


Learn more about EWI's Metals Specialty Service now >>

Tags: Elliott wave, Elliott Wave trading, Gold, precious metals, safe haven, Traders
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