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20.08.2014 11:31 AM
Gold Wave analysis for August 20, 2014

Gold is testing important Fibonacci and trend line support levels at $1,290-93. Our expectations remain bullish as long as we trade above that support level targeting $1,350 at least. The form of the decline from $1,322 is corrective and consists of 3 waves. The previous upward move consists of 5 waves and that is why I believe it is more probable to see another move higher.

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As shown in the  4 hour chart above, price is above the critical red trend line support but below the Ichimoku cloud resistance at $1,313. A  break above $1,313 will confirm our bullish view and that we are heading towards $1,350. Stop for long positions should be the $1,280 lows where the start of the impulsive wave is found.

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The daily chart shows that price is testing the lower end of the Ichimoku cloud. This is an important support for bulls. Next important support is the long-term red trend line that comes from $1,180 and touches $1,240. The support price level of this trend line is at $1,270.


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