Gold price continues higher as expected after breaking above the downward sloping wedge and above the resistance level of $1,305. The trend is up and the pattern has an impulsive form. Price is expected to continue higher towards at least $1,350 where the triangle resistance is found.
In the 4 hour chart above, you can see how strong the upward breakout is and why I changed my short-term view from bearish to bullish. Gold price bounced off the 61.8% retracement and is moving higher in an impulsive manner. If this upward move will be equal to the previous upward move from $1,240, we should expect Gold price to reach $1,380-90.
In the daily chart above, I have posted my two preferred elliott wave counts. The bearish Elliott wave count is with blue and the bullish is with red. The blue elliott wave count assumes that we are still inside a sideways triangle wave 4 and that wave B of E was completed at $1.280. We are now in the final wave C of E of 4 targeting the upper triangle boundaries near $1.350-60. The triangle pattern is canceled if price breaks above $1,390. The bullish red wave count assumes that the low at $1,180 was the end of the big decline that started from above $1,900. We have begun a new upward move and we have experienced already 2 wave couples of wave 1 and 2 as shown with red. For this scenario to become stronger, we need to break above $1,350 first and $1,390.
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