THE MOMENTUM PHASE

C-wave's tend to unfold in two phases both ending in powerful momentum moves. The first phase tends to morph into an extended consolidation while the second phase of a C-wave tends to top with gold extremely stretched above the 200 DMA to be followed by a severe D-wave correction.

We've now seen gold break out of the multi month consolidation and test that break out.

Gold should be fast approaching the momentum phase of this part of the C-wave. Actually looking at the longer term chart it's apparent gold is already in the beginning stages of the momentum phase. I expect this to last probably through most if not all of November to be followed by a consolidation phase in December and possibly most if not all of January to allow the 200 DMA to catch up a bit.

At that point we should see one more powerful momentum move as the second phase of the C wave completes to be followed by a sharp D wave decline into and through the summer months.

All in all it's probably not a good idea to lose one's position as we enter this phase of the rally.