Gold continues to make higher highs and higher lows. The support levels are being tested but only the resistance ones are broken. This is indicative that the upward trend dominates. The price reached our upper target levels near 1,430. The trend remains upward, but we feel that bulls should be very cautious. Raising their stops will protect their long positions. Exiting is also considered if you believe the top is in.
As it is shown above, the trend remains upward as the price continues to trade within the upward sloping channel. If the price breaks out and goes below this channel, then we will see confirmation that the entire move from1,270 is over. If the price breaks below the blue trendline support at 1,405, then we should expect Gold prices to move towards 1,360-70.
The short-term support, as shown above, lies at 1,412. If that level is broken, then we will expect the price to test the intermediate-term support at 1,400-1,405. The top is near so bulls are advised to raise their stops to 1,412 or exit now at 1,426.
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Performed by Alexandros Yfantis, Analytical expert InstaForex Group © 2007-2013 |
Gold Elliott wave analysis for August 28, 2013
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