Gold continues to make higher highs and higher lows after bottoming at 1,250. The current price action confirms that the trend is upward. Below we post our two most possible short-term wave counts. The red alternative count is the more bullish one. Breaking above 1,343 will put the alternative as our first choice. Our current fist choice anticipates a pull back towards 1,300-1,310 to back test the upward break out.
If prices break below the upward sloping trendline, then the blue scenario will have more chances of success. A pull back towards 1,300-1,310 is very possible if prices break below the trendline. Now the most important level for longer term trades is the 1,250-70 price zone.
Gold bulls will need to stay above the Moving average that is now support and move higher towards 1,350, where the next short-term resistance is. In the short term support is found at 1,322 and then at 1,313. We remain bullish biased for the short term, as long as prices stay above 1,320 and in the long term as long as prices stay above 1,250-70.
