Gold managed to make a new high yesterday at $1,299 a fraction higher than the previous high. Was that the end of wave C up or just a part of the sideways triangle formation? Today we focus on those levels that will make it clearer on what to expect next for Gold prices. The $1,320-40 target scenario is still on but with slightly decreased probabilities of success. This is due to yesterday's price movements.

Gold still trades within the daily upward sloping channel. Wave 5 of C could very well have ended but we have no confirmation yet. The high of wave 1 of C at $1,260 is crucial for our wave counts. If prices overlap this high, then we will have confirmation that wave C has ended, so more downside is to be expected. If prices hold this sideways movement and do not break below the triangle, then we should see an upward break being confirmed at $1,300 with $1,340 as target.

The sideways triangle is shown in the chart above. Short-term support for Gold prices is found at $1,270. Resistance is at $1,290. Going long near the support is favored. If support breaks, we favor reversing the position to short. Breaking above $1,290 would be a good bullish signal that a break out is starting. Confirmation is above $1,300. Concluding, we prefer long positions with $1,270 stop reverse and will add above $1,290. Target still remains at $1,340. If support fails we will go short and add below $1,266 as this will confirm that the move from $1,208 is over.