30.07.201312:05 Forex Analysis & Reviews: Gold Elliott wave analysis for July 30, 2013

Yesterday gold did not manage to break below the 1,325 support and neither above the 1,340 resistance. We remain short biased as long as prices remain below the 1,350 area. Our bearish view has not changed for some time and we believe that sooner or later prices are going to fall hard towards at least 1,270-80 price range.

The daily chart above still gives the bulls some chances that this sideways triangle will break upwards as soon as prices touch the lower boundaries of the upward sloping channel. We give more chances that it will break downwards. We are short biased but confirmation of our bearish scenario will come once prices break down important support levels of 1,260.

Gold as shown in the 1 hour chart above continues to trade sideways. We have altered the trend lines a bit in order to be more accurate with support and resistance levels of the triangle. If we see a break below wave i of 3, we believe we are going to see an acceleration towards 1,300-1,290. Concluding we remain short with 1,350 stop. Traders could add to short positions in our opinion only if support at 1,260 is broken. Very short-term traders could also lower their stop at the wave 2 or A high at 1,340. Targets for our short-term short position is the 1,280-90 level. Our longe- term short targets are at 1,200-1,150.