Date: September 2012: GOLD: Update of the short-term EWP | The wave trading

It is obvious that Gold is now involved in an unquestionable uptrend (QE 3 ==> US$ weakness ==> Gold strength)

But I don´t think that at the May lows price has made a Major Bottom that will allow the beginning of  a new up trend.  Instead maybe price is unfolding a larger corrective pattern.

By the way for the shorter time frame we can see that price has reached a strong resistance zone hence a pull back is not out of the question.

In the weekly chart below I have highlighted 3 potential target areas of an overdue correction that may validate a potential rising channel.

Why am I questioning a new bullish up trend?

The reason is straightforward since the move starts with a corrective internal structure.

For the short term time frame, price on September 21  should have completed a Double Zig Zag.

If this count is correct then price will unfold a corrective pullback with a target in the range 1719-1688