Weekly Update

Dow (27,930)

Dow added 190 points (+0.69%) on Friday. Very likely sub-waves i-ii-iii-iv of wave (v) have been completed and sub-wave v has started.

 

A more bullish wave count is a sub-wave i-ii and mini wave 1-2 scenario with the next run-up as mini wave 3.

 

Gold (US$1,947/oz)

From the 40-year monthly chart, Gold is currently forming the wave (iii) of its major wave 3 of its mega wave (3).

From the 30-month daily chart, gold has so far completed the sub-waves i-ii-iii-iv-v-vi as well as the mini wave 1-2-3 of its sub-wave vii. The mini wave 4 has so far pulled back 6.2%, which is much bigger than the mini wave 2's correction of 4.5%. It is possible that mini wave 4 has ended too.

Mini wave 5 is likely to start next week with a possible target of US$2,340/oz to complete the sub-wave vii.

At this moment with my projected gold price to go well above the US$2,000/oz level, I guess I can drop the second possible option of an expanding triangle A-B-C mega wave (4) formation mentioned in my previous post dated 9 August as shown below.