Gold price is pushing lower in an impulsive pattern. The trend remains downward. Gold price continues to make lower lows and lower highs. The new low made yesterday may have been the end of wave 3, and we could see a small bounce upwards for wave 4. As we mentioned before, Gold price is now trading near important support levels of $1,280-$1,250. This range is a strong supportive area and I expect the 5 wave decline from $1,391 to end within this area.
Gold price reamins inside the downward sloping channel of wave 3 and below Ichimoku support. $1,298-$1,300 is now important resistance for the Gold price and if broken upwards, we can safely say that the decline from $1,391 is complete. Short-term support is found at $1,280-$1,270.
Our longer-term view on Gold price remains the same. We are bearish in the long term, targeting new lows below $1,180 as long as the price does not break above $1,400. In the short-term, we expect an upward bounce towards $1,350 where we want to go short.
