Gold could bottom early this week with one more move down (maybe just below 1,600 intraday) to finish it's a-b-c unless Wave 5 extends lower (whether it's a complete a-b-c for Wave 2 or just Wave A - doesn't matter here - it's up we go for Wave B or Wave 1 of 3)
We went UP taking out Wave a low at 1,705.40 to "lock-in" the a-b-c pattern.
Also from October 23rd:
This Trendline Chart has four(4) touches - 2 from below and 2 from above and rests now at just above 1,500 - a drop here into the pink range could satisfy the 23.6% FIB and reinforce the importance of this trendline.
We went UP leaving this area untouched.
We are now at an important juncture, IMHO. We have Waves 1-2-3 UP off of the Wave C low at 1,535 and could potentially be in Wave 4 here with Wave 5 up to complete Wave 1 of 3 OR if early next week Wave 1 high at 1,696.80 is breached (which seems likely given the position of STO and MACD above) we will again "lock-in" another a-b-c and we will have completed Wave A (a-b-c) and Wave B (a-b-c) putting us into Wave C, which would imply lower targets near 1,500+- the BEST CASE (Also the 65-Week MA level here). Wave C=Wave A target near 1,431. (Also near the 38.2% FIB from the 2008 low)
Any early weakness next week (below 1,696.80) and it looks like 1,425 to 1,510 is the target range to the downside. I'm NOT trying to predict here only attempting to quantify some of the price levels and parameters I am watching. (and I am by NO means an EW expert)