05.08.201410:42 Forex Analysis & Reviews: Gold Wave analysis for August 5, 2014

Gold price is still below $1,300 but today we look at our alternative wave scenario that implies that wave E of the triangle wave 4 is not complete and we could see another move higher towards $1,350 if we get the buy signals we need.

Gold price remains below the Ichimoku cloud in the 4 hour chart. Gold price is also still inside the downward sloping wedge. If price breaks above $1,295, we will have a short-term buy signal that could push price towards $1,305 where the Ichimoku cloud resistance is found. Soon, we will know which side is stronger...bulls or bears as the wedge is contracting.

My preferred wave scenario so far has been that we have completed wave E at $1,346. The alternative I show today is marked with blue letters in the daily chart above. We could be well inside wave B down that has reached the 61.8% retracement of the rise from $1,240. Wave C of wave E could have well started. This scenario will be canceled if we break below $1,270 trend line support. In the daily chart price has moved back inside the Ichimoku cloud. This makes the trend neutral. A break and close below $1,285 will be a bearish sign for Gold price.