Gold price pushed above $1,350 on Friday after the weak GDP numbers announced for the US economy. With dollar weakening, gold price spiked above short-term resistance and reached $1,356. Despite being technically bullish, gold price has completed a 3-wave upward correction that reached the 61.8% Fibonacci retracement of the entire decline.
Red line -trend line support
According to my wave analysis, gold price has completed wave C up on Friday's high and a 5-wave sequence from wave B low. Price is now expected to reverse aggressively to the downside. The uptrend stopped at the 61.8% Fibonacci retracement.
Blue lines -bullish weekly channel
The weekly chart remains fully bullish as price remains inside the blue channel and above both the tenkan- and kijun-sen indicators. Weekly support is between $1,300 and $1,270 and I believe we are going to test it.
Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that June be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.