Gold prices have most probably completed the upward three wave correction from $1,180. Prices have broken the short term upward sloping trend line and this is our first bearish signal. Our next bearish signal will come when and if prices break below the intermediate low at $1,220 and thus confirm that the upward move is a three wave pattern.
Short-term support is found at $1,236. Short-term resistance is found at $1,256. The highs could be used as stop for short positions. We believe that there are many chances the upward move is over. Breaking above $1,256 could push towards $1,270 which was our first target.
The daily chart confirms the strong resistance that rejected prices in this recent upward move from $1,180. I now expect to retest the lows and make new ones towards $1,140.
