Gold is moving in a Wave (2) right now. Gold price should find support at $1,126 where the 61.8% Fibonacci retracement of a move to $1,157 from $1,100 is seen. A breakout below $1,100 will cancel my bullish scenario.
- Green line - triangle pattern
- Red line - projected price move
Gold price is testing the Ichimoku cloud support. The lower cloud boundary is also the 61.8% Fibonacci retracement of Wave (1). I expect the price to reverse upwards any time soon. That is why I started buying near $1,137 yesterday. The stop for longs should be placed at the level of $1,100 amid this wave count. I expect the price to reverse strongly upwards.
The weekly chart shows how the price is testing the Tenkan-Sen (red indicator) support. I expect it to bounce from this support area towards at least the Kijun-Sen resistance of $1,150. Gold price could be forming a couple of 1-2 waves before the strong third wave up takes place, so bears should be very cautious.
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