FX.co ★ Gold wave analysis for October 1, 2015

Gold price moved lower than initially expected but my wave count is still valid as this wave 2 has not breached the start of its wave 1 yet. Technically, the price is very close to the lower triangle boundary, so a bounce from current levels could push the pair to at least $1,140.

Green lines- long-term triangle pattern

Gold price has broken below the Ichimoku cloud and remains inside the bearish channel. The price has reached the 78.6% Fibonacci retracement holding above the lower triangle boundary. If we are going to see a bounce, we should start rising the latest from tomorrow. A bounce target is seen at $1,140, the Ichimoku cloud, and the upper triangle boundary.

The weekly chart depicts the triangle pattern we are in. We are very close to the lower triangle boundary and long positions are preferred now. The bounce target is $1,140, and if we manage to break above $1,150, I believe we can reach even $1,200.