Gold and Silver Poised - Elliott Wave Analysis
Source: Mineweb.com (3/25/07)
Fortunately there is another possibility that has very bullish connotations and which looks as if it has a high probability of being the correct interpretation.
A previous analysis contained a warning that if gold performed sluggishly as the price approached $680-$700 (instead of acting powerfully as anticipated) that there was the possibility of a B wave peak at that level, which could be part of the ongoing correction since May 2006. The gold price was sluggish when it got above $680 in February and soon started down. This raised concerns about a gold price decline to possibly below $600 and maybe a test of $560.
Fortunately there is another possibility that has very bullish connotations and which looks as if it has a high probability of being the correct interpretation. This interpretation calls for an immediate strong 3rd wave upward move in both silver and gold. Under this interpretation gold should knife through the resistance in the $680-$700 area without a problem and rise to levels in excess of previous forecasts for the peak of wave 3 of $760. A target of a minimum of $800 is now possible for the peak of wave 3.