I will get straight to the point. Yes I believe we have a lot of chances that gold price will never trade below $1,080 again and we are at the early stages of a big bull market coming. Let me explain why I’m bullish. Gold price has retraced 50% of the rise from 1999 lows. Gold price has most probably completed a wave 2 correction at $1,080 and we should now expect a wave 3 upside move. For the time being I’m not entirely sure we have completed wave 2 down but only give more chances that we have seen the end of it. Even if we are still to see one more new low, I do not believe it will be lower than $900. Gold price has entered a long-term buy area according to my wave analysis.
If you have been reading my daily analysis you are familiar with the triangle pattern I have been talking about over the last couple of weeks. Gold price is making impulsive upward moves with higher lows. All we need now is a higher high above $1,170. In order to reach that level we need to break out and above the triangle pattern. Resistance is at $1,142 and a daily close above $1,150 will confirm the breakout.
Gold price has the potential to reach the Ichimoku cloud at $1,200 if we break above $1,150. This is a very important resistance area that can produce a rejection and a pull back towards $1,150, but a break out above the weekly Ichimoku cloud resistance at $1,200-$1,250 will be a very bullish signal that will confirm long-term trend change and strengthen my preferred scenario that wave 2 down is over and we have seen a multi-year low.
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