Gold price is still in a correction mode. There is still danger that prices might fall towards $1,300-$1,295 to complete the a-b-c correction before resuming upward move towards our medium-term target of $1,350. At $1,350 we will see how strong bulls are. Our bearish wave E of wave 4 count is still valid and a very good possibility. However, the impulsive waves from $1,240 and $1,280 open up the possibilities of bullish scenarios.
Wave c could have ended yesterday at $1,304.50 when price made a marginal new low under wave a. However, we need to see impulsive patterns in order to confirm the corrective wave is over. The bullish momentum remains strong in the short-term as long as price is above the Ichimoku cloud. As mentioned in my previous analysis, 5 waves up are followed by 3 waves down and another 5 waves up. So, I expect at least one more upward move that will give a higher high than $1,322.
The daily chart remains bullish. Price is above the Ichimoku cloud. We are currently in wave C of wave E of wave 4 or (the bullish alternative) wave 3 of the start of a new upward move from $1,180. Support is found today at $1,304. If broken, we will push towards $1,295. Resistance at $1,320 if broken we can push higher towards $1,330-45. Daily important support for bulls is the $1,270 level. Important resistance is found at $1,350-90.
