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23.08.201312:53 Forex Analysis & Reviews: Gold Elliott wave analysis for August 23, 2013

Long-term review

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Gold has continued to rise upwards steadily towards 1,380 in order to test the resistance and previous high at 1,382. Since it has reached thus far, we believe it is only a matter of time that prices will break to new highs and may even reach the 1,400 price level. We were bullish from yesterday at the 1,370 level and prices are currently trading at 1,375. The price formation looks impulsive and the higher highs and higher lows confirms that trend is up.

Support is now found at 1,370 and 1,362. Resistance is found at 1,384 and 1,392. Trend is up and our view remains bullish as long as support holds. Prices are bearly trading within the upward sloping channel retaing the upward momentum. We believe a final upward break towards 1,400 will come soon and there are also some wave relationships that may justify an even bigger rise.

If the longer-term resistance at 1,400-1,410 is broke, prices could move towards 1,450 and even 1,550. But until then we have to pay close attention to the current price formation and the support levels at 1,360-70. If these levels are broken we can see prices fall towards 1,310. Concluding we are short term bullish as long as prices hold 1,362 and target 1,390-1,400.

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