Steel has something in common with gold today - and it isn't just by being another metal. Both steel and gold are in chart positions that suggest "decisionmaking" junctures. The steel ETF called SLX touched its Fibonacci retracement level of .618 back to its prior high. Gold touched the $1144.80 level, a perfect $100 rally from the swing low of $1044.80, in $GOLD (the continuous futures contract). That's close but no cigar as far as exceeding the intermediate swing high about $1162 that we've been watching to see if it's met. In both cases, price backed down later in the day. Traders' eyes are now on whether price moves and closes under today's low - or can rebound.
I don't read the indicators as guaranteeing one way or the other. My rudimentary understanding of cycles is that there may be another low yet to come. If that happens, then the Elliott Wave count may be either a wave c of a second wave pullback that could make a new low to perhaps $980 in gold. Or more bearishly, that there could be a deeper and bigger wave C to retest $681 in gold. I'm tilting to the first of those two possibilities.
Also if it happens, many position investors will be delighted to buy another low, maybe especially if it's a new low. We want to do the same, especially with gold!
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