Gold is at a crossroads

Gold is a treacherous market to trade, and it is currently sitting at a crossroads, says John C Burford. Here, he looks for tramlines for clues to where it's going next.

On Monday, I noted a five-wave Elliott wave pattern down off last Friday's $1,796 high on the 15-minute chart. That gave me some good evidence that we have seen a major high.

A minor five-wave down pattern off a high is one clue that the high is genuine.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.