Gold price stayed yesterday above $1,310 and made another try to break above $1,330 but it failed. Early today we see more signs of weakness the sideways consolidation continues to unfold after having seen a fake break out above $1,320.
Gold price is trading above the short-term Ichimoku cloud and is challenging the short-term support at $1,308-$1,310. Breaking below that level will push Gold price towards $1,290-$1,280 at least. If that support is broken, we could expect a deeper pull back towards $1,250. We have to remember that this upward move from $1,240 is most probably wave E of a huge wave 4 triangle and it is about to end.
When this wave E is completed, we should be ready to expect a sharp downward move that could bring price to $1,000 or lower. A break above $1,330 could push Gold price towards $1,340-50 which is the top area of our expectations. The best risk/reward ratio is now favoring short trades.
The material has been provided by InstaForex Company - www.instaforex.com
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