17.09.201311:39 Forex Analysis & Reviews: Gold Elliott wave analysis for September 17, 2013

Gold, as expected by our analysis, completed wave ((4)) yesterday and made a new low to complete 5 descendant waves with the beginning at 1,393. Now we expect another sideways wave 4 formation at a bigger degree that could push the prices even to 1,340. Our bearish view, however, still holds expecting a new lower low below 1,300 to complete 5 downward waves starting from 1,415.

The trend remains downward and the short-term support is found at 1,316. Making, at least, a one-hour candlestick below that level will push prices towards the lows again. Our view remains bearish as long as prices trade below 1,360. The short-term resistance is found at 1,326 and then at 1,335-40. The short-term support lying at 1,316 will push prices towards 1,300-1,298 after it is broken.

The wave pattern continues to unfold downwards in an impulsive manner confirming our view that the low at 1,270 will most probably be broken. The trend remains downward, thus, we remain biased to be short. Bulls do not want the support level of 1,300 to be broken, as this will put a 1,270 low in danger. On the contrary, bulls want prices to test the resistance level of 1,350-60. Concluding we continue to prefer short positions as prices trade below 1,360, targeting 1,280 at least.