Gold's Two Bullish Wave Counts

Gold has a couple of bullish interpretations listed below. Before I get into them, even though this piece is about 2 bullish interpretations, the market can prove both of them wrong so please don't expect this to be 100% correct...nobody has that magic wand in their hand.

The preferred count is the wave 3 higher written about 2 weeks ago is still alive, albeit barely. It suggests prices continue to follow through on a move higher that carries towards $1245. $1245 is where wave iii = 1.618 * wave i which is a common relationship.

The second interpretation is that we are working a larger zig zag higher. Zig zags carve as a 5-3-5 pattern. In this case, our '3' is shaping up like a triangle (note the alt labels). This suggests we fail below 1156 and retrace back towards 1110. Near 1110 is the buying opportunity under this interpretation for a target range near 1200-1225.

Bottom line, a failure in price early next week opens the door for a buying opportunity near 1110 (1090 stop) and target 1200-1225.

Happy Trading!