FX.co ★ Gold Wave analysis for October 10, 2014

Gold has probably completed wave 4 at $1,235 and it now resumes its down trend. Longer-term trend remains bearish targeting $1,100-$1,000. Short-term trend remains bullish as long as Gold price is above $1,204.

Blue line= support

In the 4 hour chart above I show my wave count in Gold. Gold price reached $1,235 where the 38% retracement was from the wave 2 high. The upward bounce from $1,183 is in three waves. A typical corrective wave with no impulsive structure. Wave b low at $1,204 is important short-term support that if broken will flip trend to bearish from bullish.

Red line = support

Zooming in the short-term view of wave 4, we observe clearly the three wave structure of uptrend nature. I remain bearish for longer-term despite this upside bounce in Gold price. This is wave 4 and once price breaks below the red trend line support at $1,214 we will have many chances of breaking the intermediate low at $1,204 where I believe the wave b is located. My longer-term target remains below $1,180. My target is between $1,000 and $1,100.