Hi traders, with Gold pulling back from $1,350 to $1,288 over the last few sessions, I believe it is time for the precious metal to start its next leg up towards $1,400 and why not higher. Since our warning calls around $1,350 for a pull back…
The up trend paused right at the trend line resistance and we pulled back towards $1,290-$1,300….Once the correction was unfolding…my wave view for gold was the following….
Price made new lows below $1,300 after the FOMC as expected…..
And all the signs were there for a reversal….we did not fear the $1,300 pull back or even the new lower lows….
Because we were expecting it….And yesterday? the miners started to show that the reversal was coming….
What about now? Gold bounced back above $1,300 and reached the Ichimoku cloud resistance in the 4 hour chart and got rejected.
Gold most probably has already started its next leg up. A pull back and a higher low is expected. Maybe between $1,295-$1,305. We will have confirmation of the trend change in the short-term back to bullish once we break above the high we made on the FOMC day…around $1,317. Once this is done…..we look for our first target around $1,400.
So buying the pull back with a stop placed at recent lows is a good risk reward strategy, with the plan to add if and when we break above $1,317.
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