In early January, I published chart 1 below, suggesting more downside in gold. Using the GLD ETF as a proxy for the yellow metal, this weekly interpretation might have very well omitted important details in the development of the wave structure, which can only be observed on the daily timeframe.


Chart 1. My initial interpretation of the GLD's wave structure on the weekly timeframe.

By zooming in on the daily timeframe (chart 2 below), I'm now strongly leaning toward calling the late-December low a high-probability reversal point from where the higher-degree bull trend is likely to resume.  Should this analysis prove accurate, the overall correction would be counted as a complex double zigzag.  

With that said, I expect the rise that ensued the late-December low to be partially retraced as I was able to identify a 5-wave upward pattern off the late-December low on the 60-min chart.  As far as the GLD, I'm looking for $154 - $155.50 downside before the next up leg begins to unfold.  In the event of a development that alters this view, I'll make sure to alert you.


Chart 2. Bullish indications on the daily chart of the GLD on the heels of a mature corrective pattern.

Trade Well,

Peter