The Gold price remains below $1,300 but above critical support at $1,287. The trend could reverse upwards again if the price breaks above $1,305. This could lead to a move higher towards $1,325 and even $1,350. However, we must be very cautious as support at $1,287 is very close. If this support is broken, we should expect a sell off to follow that will push the Gold price at least towards $1,275-70.
In ichimoku terms, the price is below the cloud and this is a bearish sign. Breaking above the Ichimoku cloud at $1,305 wil be a short-term buy signal that will have $1,325 as the first target. The area below $1,290 is very crucial for bulls. If broken, we should expect heavy selling pressures to push the Gold price lower towards $1,275-70.
In the daily chart, the Gold price remains above the Ichimoku cloud. Important support is at $1,287 that coincides with the top end of the Ichimoku cloud. The crucial price level for our bearish elliott wave scenario is the $1,265-$1,240 area. As long as the Gold price on a daily basis is trading above this area, bulls should feel safe. Breaking below $1,260-40 will confirm our bearish view that wave E top was at $1,346.
