Here is what i said about gold yesterday:
Here is the previous chart given below:
i was expecting this bounce to finished about 1210-1212 area but as it is evident i was wrong. Gold did a high of 1217.35 before a pullback towards 1208.50.
Let's have a look at the daily chart given below:
There are only 2 scenarios here
1 - If we are done with a shallow retracement in wave 2 of III (just 38.2%) and moving in wave 3 (of III) higher then the projected trget area for this move is going to be atleast 1282 and 1342 in case of further 1.618% in case of extension.
2 - But if this is not the case then this yellow metal might be going to develop an elongated flat correction with a spike of 1228-1232 area and another move down after that towards 1180.
An Impulsive move above 1232 will confirm the higher Target area for gold bulls.
Indicators check: on crossroads
MACD is in favour of bears
Rsi is in favour of bulls
Lets have a look on the lower time frame of 2 Hr
2 Hr chart is showing a pause in current uptrend just below the critical resistance, if gold fails again in this area (MACD and RSI both are suggesting an edge to bears so far) then we might have a good opportunity to buy on lower prices.
But we should also be ready to catch the impulsive move above the resistance area as the upside Target area is not small one.
Resistance: 1222/1234
Support : 1202 / 1195