Gold is in downtrend within a downward sloping trend channel and we believe it currently makes its upward wave 4 bounce as shown in the chart below. Prices are now at $ 1,210 and we believe that the upward bounce is most probably over. Prices are expected to turn downwards towards $1,180 to complete our anticipated wave 5.
Short-term support is found at $1,205 and then at $1,195. Short-term resistance is found at $1,220 and then at $1,240. We expect prices to remain inside the blue downward sloping channel. Prices have reached the upper boundaries of the channel and we expect to see a rejection now that will lead prices lower to complete wave (5).
The daily chart above shows clearly that the trend remains downward. We believe that the move from $1,270 is still not over as well as the move from $1,360. We expect this downward move to end near $1,1150. We remain bearish.
