02.09.201318:43 Forex Analysis & Reviews: Gold Elliott Wave analysis for September 2, 2013

Long-term review

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Gold has reahed the 38% Fibonacci retracement at 1,372, where our first target of this downward move was. Prices are now bouncing upwards towards the downward sloping red trend line resistance at 1,394. Short-term resistance is found at 1,394-1,400-1,410. Short-term support is found at 1,384-72-66.

We opened a short position when price broke down below 1,412 and 1,400. Half was closed at our first target at 1,372 and we are looking to sell again this upward bounce as we expect prices to fall bak down towards 1,355.

We should see a break below 1,372 in order to confirm this bearish trend towards 1,350 (50% retracement). Otherwise, if prices start to make higher highs and higher lows we could see the bullish scenario with target at 1,450 is increasing its chances. As long as the prices trade below 1,400 we remain strongly bearish with 1,350 as target.

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