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Right now, price to normalized forward operating earnings sits at the second highest level ever,
The price to 10yr earnings sits at the second highest level ever,
The price to revenue ratio sits at the second highest level ever,
GOLD has rallied today in a pretty bullish looking fashion.
I can count five distinct waves in the rally,
and the decline is in a three wave form.
Speaking of momentum,
The 4hr RSI and MACD have turned up again
The rising momentum trend is intact.
A momentum buy signal will occur soon.
This has the potential to get exciting.
Remember this market has now completed a rally and decline to higher lows at three degrees of trend over the last six months.
I believe we are now on the cusp of a serious acceleration higher
Wave ‘ii’ brown has completed a three wave decline off the recent high
the trend channel has been met once more.
And momentum is signalling an oversold extreme again!
I am now looking for the formation of a bullish higher low off nearby lows.
Downside momentum has again disappeared,
The 4hr RSI is turning up and keeps the higher low intact.
The 61.8% retracement level is near and this is the target for wave ‘ii’ to complete.
I can see a bullish technical picture,
A bullish momentum picture,
And most of all, an extremely bullish wave count.
This move looks drastic when viewed on its own.
But, when viewed as part of the overall developing wave structure,
it is nothing overly worrying!
When I look at the COT data, I can see that open interest has flat lined and bullish positions are building again.
So the appetite is there for a rally to commence.
After watching GOLD decline throughout the day,
I am beginning to wonder if wave ‘ii’ brown is actually complete at todays lows?