FX.co ★ Gold technical analysis for April 28, 2014

Gold price continued its reversal from Thursday lows at $1,268. Gold price has broken the short-term downward sloping trend channel and is now testing resistance at $1,305 where the previous high is and the Ichimoku cloud resistance.

Gold price has made a short-term reversal and is looking higher towards $1,330. I will be more confident of reaching $1,330 if resistance at $1,305 is broken. Rejection at $1,305 will mean a pull back towards $1,280 is very possible. In other words new long positions are favored above $1,305 after resistance is broken. Next short-term resistance is found at $1,330. Short-term support is found at $1,300.

In the daily chart above you can see my short-term preferred elliot wave count. I believe best strategy for longer-term traders is to wait for $1,340-50 before selling with $1,200-$1,100 as target. Otherwise a break below $1,268 will be a sign that we cannot go above $1,330 and we are going straight to $1,200.