The Medieval executioner's axe was not always sharp and his aim not always true.
That's detail enough to know why the condemned sometimes required more than one swing.
A more recent "swing" managed to wound -- but not sever -- the neck of the golden goose. Short Term Update subscribers were warned that the fowl who lays the golden eggs was facing the chopping block, even as the price of those eggs kept rising.
"The final rise...appears complete or very nearly so."
Short Term Update, Sept. 2
On the day of the above analysis, spot gold closed just above $1882. From there prices did climb briefly, to a Sept. 6 high of $1921.50. Then gold fell by some 20 percent.
Here's the gold chart subscribers saw in that Sept. 2 Short Term Update (minus wave labels and chart title):
Note the words "throw over" on the chart. In this context, the Wall Street classic Elliott Wave Principle (p. 73) defines what the phrase means:
"If volume is heavy as the fifth wave approaches its upper trendline, it indicates a possible penetration of the upper line, which Elliott called a 'throw over'....
"A throw-over is confirmed by an immediate reversal back below the line."
You can see gold's price did indeed penetrate the upper trendline. Since then prices have reversed back into the trend channel.
Gold has come off the recent low, yet it's still far below the Sept. 6 high.
What's next for gold? Will another axe swing soon land on the golden goose's neck?
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