Gold price has broken our support level at $1,290-95 and has pushed below $1,280 as many stops were triggered. Strong support is found at $1,270 and this will be crucial for bulls. The bullish bias is still quite possible but technically the trend remains bearish. Bulls need to retake $1,307 in order to regain the upper hand. Below is the 4 hour chart that depicts my new elliott wave view in Gold.
Price made a new lower low. This has triggered many stops and many long positions have closed. However, price is still trading around the 61.8% retracement. By this alternative new wave count, we could still see prices reverse upwards towards $1,350. Technically, the trend remains bearish as price is making lower lows and lower highs and is below the Ichimoku cloud. We need to see 5 waves up of a minute degree in order to talk about a possible upward reversal.
Gold price has broken below the Ichimoku cloud in the daily chart as shown above. Important trend line support is found at $1,270. This is the last chance for bulls. I give more possibilities of an upward reversal even if Gold price made a new low below $1,280. However, a buy signal will be given only if a reversal is confirmed. This buy signal will be given if price breaks above $1,305 on a daily closing basis. Breaking below the red trend line will open the way for a push lower towards $1,240.
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