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FX.co ★ Gold Elliott wave analysis for July 19, 2013

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Forex Analysis:::2013-07-19T09:40:42

Gold Elliott wave analysis for July 19, 2013

Gold has found support in the lower boundaries of the sideways triangle and has bounced upwards towards the upper boundaries of the triangle. Prices continue to trade within the corrective price range and there is still no clear direction or trend signal. Upper boundaries provide resistance at the $1,291 price level and support at the $1,273 price level.

Gold Elliott wave analysis for July 19, 2013

Despite the new high yesterday, prices seem to be in a sideways triangle and the final 5th wave of the upward wave C is most probably not over yet. Therefore, we still expect prices to make a final upward break above $1,300, most probably towards $1,340. Breaking above $1,291 could be the first break out sign and confirmation will come if prices break above $1,300. Support at $1,273 is crucial that if broken will minimise any chances the bullish scenario may have. Moreover, if support fails, it will be very easy for bears to push prices past $1,266 and make an overlapping wave structure canceling any expectations for a 5th wave up.Gold Elliott wave analysis for July 19, 2013

On the daily chart, as shown above, we observe that prices are trending sideways towards the channel boundaries. The 34 day MA poses an important resistance that continously slides lower putting an extra pressure on Gold prices. Early next week we will have a clearer picture on where Gold is heading. Trend will soon change either up or down. Volatility will rise and any break out will signal the direction of the next move in Gold prices.

Concluding, watch out for break out of the triangle price range. Upper level to watch is $1,291 and $1,300. Lower price level to watch out for is $1,273 and $1,266.

Analyst InstaForex
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