Today, I have posted an alternative wave count for the Gold price as we could see more sideways price action despite the short-term weakness. We have completed wave A and B . A new wave C towards $1,200 should be expected.
Red line = resistance
Blue line = support
Gold price is inside wave C up alternative or in an unfolding new downward impulsive wave towards $1,150. The short-term resistance trend line is seen at $1,190. Ichimoku cloud resistance is found in the territory of $1,186-$1,193. As long as the price holds below these levels, bears have the upper hand. Important resistance is at $1,215-22 while important support is seen at $1,178-70.
Light blue line = neckline
Dark blue lines = projection
Black curves = H&S pattern
Gold price could be forming a Head and Shoulder pattern in the daily chart. A daily break below $1,130 could push the price towards $1,000 or even lower. The trend is bearish and there is a strong probobility that the pattern can be confirmed. Stop for bears should be set at highs of the right hand shoulder at $1,222.
The material has been provided by InstaForex Company – www.instaforex.com