Gold finally broke to the upside yesterday, moving sharply through the 2529 level and out of the consolidation we’ve been tracking in wave four for the last two weeks. So far, we’re seeing a nice extension to the upside, which suggests that wave five is in progress. However, it should be subdivided into five sub-waves before we can call an end to the uptrend. Ideally, we’ll see another leg higher after the next fourth- subwave retracement, with 2590 to 2600 as the next upside projection and potentially strong resistance for the entire fifth wave.
If you’re looking to join the trend here, keep in mind that it might be a bit late, especially since moves out of a triangle are final in a higher degree sequnce, and that market is ready to turn, when least expected.
Drop back below 2529 will signal for a top.
