Yesterday we saw a strong decline in Gold price as I had forecasted since the upward sloping channel was broken and support at $1,315 failed. Gold price reached our target and moved even lower towards the 76% Fibonacci retracement where it bounced upwards. Gold price reached just below $1,285 and strongly reversed higher towards $1,300 where it consolidates.
Gold price is trading inside the Ichimoku cloud. This is neutral trend. If price moves above $1,310 I can say that short-term trend is up again. Support at $1,275 was held yesterday and this is an important bullish sign. If this support fails, forget about $1,340-50. If $1,275 support fails, I expect price to fall stronger towards $1,200. If support holds, I expect $1,330 to be challenged and why not see an upward move towards $1,350.
My favorite wave counts are shown above. I believe it is more probable that we completed wave B down and we have started wave C up that could bring Gold price near the 50% and 61.8% Fibonacci retracements. My longer-term view remains bearish. So now I prefer to wait for Gold price to either break below $1,275 or go to $1,350 to sell it with $1,391 stop and $1,200 first target.
The material has been provided by InstaForex Company - www.instaforex.com
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