There's a finished bullish Wolfe Wave pattern in Gold. The 0.786 retracement level from the last upward price movement has acted as support, which brings more evidence that wave 5 is in place. Besides, there's a pullback from line 1-3, which highlights the opportunity to have a sixth-wave rally in the coming hours. The break-out of line 2-4 will confirm the bullish outlook.
The main target for wave 6 is the 0.618 multiple of the last advance at 1443.72, which is near line 2-4. The subsequent pullback from this level might be a starting point for a downward bearish correction or even for the uptrend reversal. However, if the market breaks the line 2-4 and 0.618 level, there'll be a green light for the further bullish rally. If this happens, the high of wave 2 is likely to be broken.
The bottom line is there's a local bullish moment on Gold. The main critical level is line 1-3-5, which is acting as support. If the price breaks and fixates under this line, the outlook will be under pressure.
