Gold Talk - Going Up or Down from Here?

From lilitulip - why do you expect gold drop big? it broke out the bottom last Friday. thank you

It's hard to explain with few words why I have a bearish view on gold in the near term.  You know that I trade solely based on my wave counts.  Let's take a look my wave count back on 05/26/2012.  I expected gold to form a wave-D (after ABC) and then wave-E to end the bear market (purple line).  I wanted to see the wave-D in a diagonal triangle - a normal situation.  Let's take a look the wave count from yesterday (06/02/2012), the scenario for wave-D was still valid (but in a different wave format).  From the current price, most likely it has two possible ways to go (in normal condition): 1. collapse (purple line) to start wave-E, or 2. consolidate (grey line) and then to start the bull run.

With that said, (in normal situation) I bet gold to go down from last Friday's high for either entering a consolidation or an impulsive down wave.  If it collapses, I make big.  If it goes flat, I still be able to exit easily.  ... Note that all these are based on the assumption that the market behavior will be in normal condition.

BTW, I forgot to mention that no matter which count (purple or grey) it goes, I still see gold will set a new all time high by the end of this year or the beginning of next year.