GOLD has bottomed as expected near 1,215 and is now trying to start a new upward move. As noted in previous posts, Gold at 1,208 completed wave B of the upward correction that started at 1,180; finished wave A at 1,266; moved down to 1,208 for wave B and now is starting wave C up towards 1,260-80.
The short-term trend remains down, but we think that it is very possible to see things change as we expect prices to move towards the upper channel boundaries and towards the 100 candle MA. According to Elliott wave theory, wave C should end above wave A. This means that for the wave pattern to be complete, we need Gold to make a new high above 1,266. So here is our first target for this upward move. If wave C is equal in size with wave A, then we would expect prices to move towards 1,285-90 area.
The short-term resistance is found at 1,228 and next at 1,243. The short-term support is found at 1,215 and 1,208. We prefer long positions with 1,208 as stop and target at least 1,240. Breaking above the resistance levels would signal us to add to our long position with 1,260 and 1,285 as possible topping targets. All in all we are bullish with recent lows as stop.
The material has been provided by InstaForex Company – www.instaforex.com
GOLD has bottomed as expected near 1,215 and is now trying to start a new upward move. As noted in previous posts, Gold at 1,208 completed wave B of the upward correction that started at 1,180; finished wave A at 1,266; moved down to 1,208 for wave B and now is starting wave C up towards 1,260-80.
The short-term trend remains down, but we think that it is very possible to see things change as we expect prices to move towards the upper channel boundaries and towards the 100 candle MA. According to Elliott wave theory, wave C should end above wave A. This means that for the wave pattern to be complete, we need Gold to make a new high above 1,266. So here is our first target for this upward move. If wave C is equal in size with wave A, then we would expect prices to move towards 1,285-90 area.
The short-term resistance is found at 1,228 and next at 1,243. The short-term support is found at 1,215 and 1,208. We prefer long positions with 1,208 as stop and target at least 1,240. Breaking above the resistance levels would signal us to add to our long position with 1,260 and 1,285 as possible topping targets. All in all we are bullish with recent lows as stop.
The material has been provided by InstaForex Company – www.instaforex.com
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