06.09.201312:51 Forex Analysis & Reviews: Gold Elliott wave analysis for September 6, 2013

Long-term review

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Gold broke down yesterday making a lower low, then 1,372 canceling the sideways scenario and confirming our primary view that prices were heading towards 1,360. Prices are falling in an impulsive pattern and our view that the trend is bearish is confirmed.

Our first short-term support and target for Gold is found at 1,359-55. This is the price level where we are going to take partial profits. If a new low below 1,363 is made, then automatically the stop for bears will be the 1,374 price level. The downward sloping channel is not very steep and that is why we prefer to take partial profits at the 1,355-59 zone.

Additionally, as one can see in the daily chart above, prices are heading towards the upward sloping trend line as we mentioned in previous posts too. 1,350 is the support at a daily level and we believe that at least a short term upward bounce should be expected from this level. At that price level, the MA provides additional support and that is why we prefer to lower our stop and take partial profits near 1,355. Concluding we remain bearish and will decrease our exposure and lower the stop for our short position.

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