Yesterday, gold price made a higher high above $1,270 and canceled the bearish wave count that was our first choice. Despite the upward price spike, Gold price reversed soon after moving back below the resistance level of $1,260. The upward move changed our view regarding the short- and intermediate-term trend. The three consecutive higher highs in Gold price as shown in the chart below and the inability of sellers to break below support at $1,245 increase the chances of a new upward move to continue the corrective wave from $1,180.
Gold price as shown above stays above the short-term upward sloping trend line and has formed and inverted head and shoulders pattern. If Gold price breaks above the neckline at $1,265 we could see an upward acceleration towards $1,290-$1,300. Moreover, Gold price has just moved above the Ichimoku cloud resistance and this adds to the alread strong support below $1,250.
The battle around $1,260 still holds and neitheror bulls nor bears have the upper hand yet. Important price levels that will decide who gets the upper hand are: $1.265-$1,275 for bulls and $1,245-$1,230 for bears. Concluding we shift our short-term view to bullish specially if price makes a move above $1,265. Below $1,245 we will look for short positions as weakness will increase if support fails.