12.09.201313:12 Forex Analysis & Reviews: Gold Elliott wave analysis for September 12, 2013

Long-term review

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Gold did not manage to make any significant upward move. Resistance at 1,372 was not broken and prices moved sideways in an overlapping pattern. The correction ended today as the low at 1,355 was broken and prices fell towards our second target of 1,340.

The trend remains downward, but bears should be cautious and to move lower their trailing stops to protect their gains. Important resistance is now found at 1,366. If broken upwards, it can lead prices towards 1,375-80. We believe that prices could go as low as 1,330. Pushing lower could put the bullish scenario in danger.

An important breakdown of support has occured with a new low today. The upward sloping trendline in the daily chart that connects the 1,180 with 1,272 lows was broken earlier today. This puts the bullish scenario in the second place. The bearish scenario becomes our first choice as suppot fails. The short-term support is found at 1,330 and then 1,307. The trend remains downward as lower lows and lower hgihs continue to be the main pattern in the daily chart. We remain bearish as long as prices trade below 1,368. Profit taking is advised to minimise risk because of higher probability of an upward bounce.

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