The Gold price is making an upward move as we expected in the analysis I posted yesterday. 5 waves down were complete yesterday and as I mentioned in yesterday's analysis, an upward bounce towards the 61.8% retracement is very possible.
As shown in the 4 hour chart above, we are now heading towards the first important resistance of the 38% retracement where we also find wave 4 of a lesser degree. This is a very common area for retracements. So, I believe the market will certainly see the price over $1,310. Besides, the upward correction could unfold even towards $1,324. The 61.8% retracement is at $1,324 and this is our target. Since this upward move is after a 5 wave decline, we expect another 5 wave decline to follow as soon as this bounce is over.
The Gold price could have completed wave 4 and is now starting a new downward move that will bring the Gold price towards $1,000. I'm bearish concerning Gold as long as the price is below $1,391. A short-term stop for bearish positions is at $1,346. Our bearish scenario will have more chances of success once we break below $1,285 and $1,240.
