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Chart of the Day:
On the daily gold chart, the market reversed powerfully from the 1226 area where a Long black wave III was completed with an extended structure (five red sub-waves). Gold is now trading in a Short wave IV reversal, which is very close to the 50% retracement (1060) area of the wave III distance.
Wave IV is a corrective wave, and as such we are looking for three waves of decline, labeled as red A)-B)-C) with a red C) in progress before this Short reversal will be complete.
Declining prices in wave IV must not fall below the 989 zone, otherwise the wave count will be invalidated, as wave IV must not trade into the territory of a black wave I.
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