For Traders

Analytical Reviews

Wave analysis

07.08.201411:19 Forex Analysis & Reviews: Gold Wave analysis for August 7, 2014

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Gold price showed a buy signal yesterday as it broke above the wedge and above the Ichimoku cloud resistance. Price has held above the critical $1,280 price level. Gold price has started an upward move from $1,280. According to the short-term bullish scenario, wave A was completed at $1,346. Wave B at $1,280 is now the most probable scenario to come true. The decline from $1,346 is not impulsive. So, this decline cannot be the start of a downward impulsive move that will bring Gold price to $1,000. So, wave E is still underway and not complete. We are currently at wave C of wave E of wave 4.

Gold price as shown in the 4 hour chart above has broken out of the downward sloping wedge. It has also broken above the Ichimoku cloud. The cloud support is now at $1,295. Gold price has also broken above the 78.6% Fibonacci retracement of the move from $1,312 to $1,280. We might see a pull back towards $1,300 but I expect Gold price to continue making higher highs and higher lows.

Gold price has broken once again above the Ichimoku cloud in the daily chart. This is a bullish sign. My short-term target for Gold price is the $1,340-50 level. As long as Gold price trades above $1,285, I expect this upward move to unfold and push higher towards the upper boundaries of the red triangle.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.