23.09.201311:39 Forex Analysis & Reviews: Gold Elliott wave analysis for September 23, 2013

Our bearish view on Gold got confirmed and brought us profits as our targets were reached. Early on Monday Gold has tested the 1,300 support and now is trading near 1,327. The pullback down was expected and since the lows are not broken the bulls can be confident of another upward move. Since the low at 1,291 was not broken we can talk about a possible upward move expectation that would test the previous highs at 1,375.

Gold has retraced a bit more than the 61.8% Fibonacci retracement and we can now say that it has ended the downward correction. If the prices do not break below 1,300-1,291 level, then we could see an upward move towards 1,365 or even 1,430. First short-term resistance is found at 1,342 and then at 1,365. Support is found at 1,309-1,300 and 1,291.

The bulls could use the lows as stop to enter long positions with 1,370 as the first target. Adding to longs above 1,342 could be wise in order to manage better potential risk of failing support at 1,309 if our view is not confirmed. Long-term support is found at 1,270-90 area and that is why we could justify an upward move from these levels. We are now neutral to the bulls as long as the prices trade above 1,300 targeting 1,370. If support fails then we should expect the low at 1,272 to be tested.