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Another Big Down Day In Gold: Should You Be Getting Used To This?
EWI's Short Term Update identifies a crucial price support level that, if broken, would send gold solidly in bearish territory
By Nico Isaac
Wed, 23 May 2012 17:15:00 ET
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Over the last 7 months, gold bulls have had their faith severely tested. To wit:  

  • So far this year: Gold prices have shaved 20% off their value since hitting an all-time high in early September 2011.
  • So far this month: May 2012 has seen gold prices tumble to their lowest level in nearly 5 months.
  • So far this week: On May 11, gold prices experienced their largest weekly drop for the entire year.
  • Today: On May 23, gold prices turned heads with a $30-intraday drop before easing back at the day's end. 
Now for the bullion-dollar question: Is it time for the gold bulls to hand in the towel?
 
As for the answer -- EWI's premier Financial Forecast Service provides a most comprehensive outlook for both the long- and near-term trend underway in gold.
 
With respect to the long-term: Days ahead of gold's all-time September 6, 2011 peak at $1921.50, the September 2011 Elliott Wave Financial Forecast exposed a mountain of "evidence of a bullish extreme" and built the bearish gold case on these insights and accompanying chart:
 
"Perhaps the strongest sign of a gold top is a recent Gallup Poll showing Americans now consider gold to be the best long-term investment...
 
"Also, gold's wave structure is consistent with a terminating rise. As this monthly chart shows, prices exceeded the upper line of the channel formed by the rally from the 1999 low in what Elliott terms a throw over. A throw over occurs at the end of a fifth wave and represents a final burst of buying."  
 
 
Now that gold's landslide has taken prices $380-per ounce lower, the immediate focus is on how to navigate the market's volatile near-term swings.
 
And, our May 21 Short Term Update (part of The Financial Forecast Service -- see special offer below -- Ed.), identified a specific price level that, if broken, would solidly tip gold's trend in the bears' favor.
 
The time for objective analysis of gold's long-, and near-term trend is now. The best part is, if you start a risk-free subscription to Financial Forecast Service right now, you get your 2nd month free. (You get instant online access to the May 21 Short Term Update.)
 
Full details of this limited-time offer below.
 
 

 

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Tags: Bob Prechter, Elliott wave, Elliott Wave Theorist, Gold, gold futures, Robert Prechter, precious metals
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