Gold Price Forecast to Fall to $1180Commodities / Gold and Silver 2013 Nov 07, 2013 - 03:18 PM GMT
GOLD reversed sharply to the downside at the start of September, through the rising trend line of a corrective channel. As we know that's an important signal for a change in trend, which means that bearish price action is now back in view that could accelerate to the downside in the next few weeks if we consider possibly completed flat correction in wave 2. A fall and daily close beneath 1251 is needed for a wave 3 down back to 1180.
GOLD Daily Elliott Wave Analysis
On the 4h chart below we can see recent reversal down from 1360 where a five wave move from 1251 probably accomplished that flat correction in wave 2 as mentioned and presented on the chart above. Notice that current weakness also extended through the small base channel line (blue circle) which usually occurs in impulsive price action. With that said, further weakness is expected as we think that price is in now moving lower in red wave i) that may find a support around 1280-1290 and then will make a retracement up in red wave ii) which could be a very good position for short opportunity.
GOLD 4h Elliott Wave Analysis
On Intraday Chart GOLD was slightly higher yesterday but price did not go beyond the wave (A) so a triangle in wave iv remains valid count. Waves (D) and (E) yet to come before we go down, through 1305 support that will open the door for 1290.
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Gregor is based in Slovenia and has been in Forex market since 2003. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets; from candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful to traders.
He was working for Capital Forex Group and TheLFB.com. His featured articles have been published in: Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu. He mostly focuses on currencies, gold, oil, and some major US indices.
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