Gold Prices: This Rally Is Likely To Fail

It appears we are rallying out of the third common cycle low. This rally could last up to ten trading days but be as little as four trading days. The intermediate cycle has already failed, topping at $1,377.50. I expect this rally to fail and break below $1,300.

Gold Cycle Count

The second common cycle low bottomed at $1,310; it failed to make a new high (cycle failure). The third low bottomed yesterday, at $1,305.50, a left translated cycle. This implies that the larger intermediate trend topped at $1,377.50. Therefore, the fourth common cycle (just starting) should rally temporarily but ultimately disappoint and drop prices into the intermediate Buy Zone.

To see Buy Zone Targets for silver and miners checkout our previous article.

http://news.gold-eagle.com/article/gold-prices-and-miners-are-dropping-expected/362