Gold needs to break its cycle uptrend line in order to confirm that a move into the first daily cycle low is underway. I would expect at least a 50% retracement of the initial rally, but 62% is possible.
During the daily cycle low, I expect big money is going to try to run the stops below the August low to loosen traders' shares. This will allow smart money to by as cheaply as possible, ahead of what I expect will be a big rally during the second daily cycle (see HUI chart, below).
