06.10.201411:09 Forex Analysis & Reviews: Gold wave analysis for October 6, 2014

Long-term review

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Gold price has pushed towards our short-term target of $1,180 as expected and bounced after testing this important low from June 2013. Gold price remains in a fully bearish trend and we continue to expect we will see new lower lows towards $1,000.

Blue line= support

Green line= price channel

Gold price remains in a bearish trend. Price is below the Ichimoku cloud and still inside the downward sloping channel. After breaking the short-term support at $1,204 Gold price has pushed lower towards $1,180 which was our short-term target. A bounce from this level was expected as this price area is the important low made in June 2013.

Short-term trend changes would take place only if Gold price breaks above $1,225. Resistance is found at $1,197 and at $1,220. I do not expect Gold price to be able to push again above $1,210 and I believe it is just back testing the break out area at $1,204. I expect selling pressures to resume and finally push Gold price below $1,180. 1st short-term target is found at $1,170 and then at $1,120.

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