FX.co ★ Gold Wave analysis for October 3, 2014

Gold price most probably completed wave 4 yesterday and should start pushing below $1,204 lows towards $1,180 which is the major low and support. Our view remains longer-term bearish towards $1,000 as long as price is below $1,280.

Blue line = support

Green line = price channel

Gold price remains in a bearish trend. Yesterday, I mentioned that price got rejected at the upper channel boundaries and at the Ichimoku cloud resistance. This confirms that trend is bearish and that there are more chances of breaking below $1,200 now than pushing above $1,225. Resistance at $1,225 is important and a break above it will change the short-term trend to bullish. Support at $1,204 is expected to be broken and Gold price to move towards $1,180.

In the chart above, I post my Ellliott wave count and that is why I expect Gold to push towards $1,000 as the final wave 5. The sideways corective move since May 2013 has broken downwards from $1,270 and has given us a strong sell signal targeting $1,000.