FX.co ★ Gold technical analysis for July 1, 2014

Gold price target has been achieved. Gold price made a new higher high yesterday but it looks like bulls are not very strong and that we are in the final stages of the rally from $1,240. We can still see a move higher towards $1,340-50 but the chances are getting slim.

Gold price is above the Ichimoku cloud support and above the red upward sloping trend line. This supports our view that there is an increased chance of seeing $1,340-50. We are at the final stages of wave E and we look to sell this rally as I expect a major reversal.

The above chart shows my wave count that I believe soon will be complete. Gold price could make a blowoff top by touching the upper red trend line resistance at $1,340-50. After this move is complete, I expect a move to new lows towards $1,000.