05.02.201411:50 Forex Analysis & Reviews: Gold Elliott wave analysis for February 5, 2014

Gold price continues to trade below important resistance at $1,270 and above important support at $1,230. The current decline from $1,279 is not a clear impulsive move, so unless prices start a decline soon towards $1,220-$1,200 then we could say that this small downward move is part of a bigger upward correction that could push prices above $1,300.

In the 4 hour chart, we have to be alert if Gold price breaks above or below the two trend lines shown. If Gold price makes a move above $1,265 or below $1,245, then we could see an extension towards $,1280-90 or $1,230-20 respectively. For the decline to be impulsive, we will need a big downward wave as three of three because of the initial overlaping pattern. If this wave that started at $1,279 is still the part of correction, we could see a move towards $1,230 and then back if not straight up from here.

The daily chart above shows that prices battle around $1,260-50. Gold price remains supported on the daily level as it holds above $1,230. Additionaly, Gold price pattern of higher highs and higher lows has still not been canceled. If it breaks below $1,230, this pattern will be canceled and the trend will change to down on a daily level. For now, only short-term trend is down while intermediate-term trend is up targeting $1,320. Today, we will favor short positions near $1,260 and $1,270 stop and long positions near $1,250 with $1,245 stop.