The upward bounce in GOLD was incomplete that is why we saw a higher high yesterday. Prices where expected in our previous analysis to test $1,260 after breaking above $1,245. The rise from the intermediate low atВ $1,218 seems now as a complete 5 wave upward move and I think this is the end of wave C up. Initially I was expecting this wave C to reach $1,270 but since it made a new higher high above $1,245, Elliott wave rules are satisfied.
This does not mean we cannot see higher price levels. However, bulls should be very cautious if prices break below the purple support trend line now at $1,238. Short-term support is found at $1,242 that if broken could start a small sell off towards $1,220.
We will take short positions only if support levels fail and with $1,255 as stop. Short-term resistance is found at $1,270. I believe that there are small chances of seeing that price level now. As said previously, I will only look for short positions if support levels fail. Otherwise I will stay neutral.
