Gold’s Short-term Elliott Wave Mapping

October 14, 2019

Gold is inside a long-term Bull market, as the supply of fiat currencies rise per ounce of Gold. Simple math. The Elliott Wave mapping is in tune with this fundamental fact.

Gold is rising inside a rising trend, the third wave of a five subwave Bull market, Minor degree wave 3-up. Below we see this mapping chart.

This wave 3-up move is built with five component subwaves, and Gold is now working through the fourth, subwave 4-down, with wave 5-up to follow. Wave 4-down is likely taking shape as an {a} down, {b} up, {c} down move. What is unclear at this time is whether wave {c} down of 4-down has nearly completed, or whether only the first component wave {a} down is finishing. We show this alternate possibility in the next chart.

If wave 4-down has completed, then the final close-up shorter-term moves are shown in this next chart, as are the initial waves for the start of wave 5-up of 3-up.

What Gold bugs can look forward to is that wave fives are typically the extension waves within a larger degree five-wave move. In other words, the most dramatic vertical progress typically occurs during wave fives.

If wave 4-down has completed and 5-up is starting, it means Gold should soon resume its strong rising trend. But in this case, upside momentum needs to pick up. Failure to see strong impulsive upside progress soon would suggest the alternate EW mapping is occurring, that wave 4-down is not complete yet. We should soon have clarity.

At McHugh’s we track the short-term waves that make up these larger degree trends, and chart them in our forecast newsletters, and have developed several proprietary Buy/Sell indicators that help us identify when the next significant move is starting for Mining stocks, and in which direction the move will develop, which are also helpful to forecast moves in Gold and Silver. We publish these indicators in every Daily Newsletter to subscribers.


Minting of gold in the U.S. stopped in 1933, during the Great Depression.

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