GOLD Elliott Wave
Last week Gold was trading in a slight downward movement, corrective 2 wave (coloured green) of the bigger wave 1 (coloured red) was developing. Yesterday during the Asian and European sessions we could observe descending movement from 1,728.84 towards the 1,720.31 level. Therefore, during the New York session this commodity started pushing higher reaching a new 2 days high at 1,733.33 level. We can consider this move as the end of the corrective B wave (coloured blue). At the moment Gold is trading around 1,724.10 level and we are expecting to see continuation of the bearish mood today. In accordance with our wave rules and taking into account that the wave 2 should retrace 50% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1,705.88 (61.8% of wave 1). To reduce the risk, we can use resistance at 1,734.20 level as stop loss.

Support and Resistance
(S3) 1,708.8 (S2) 1,714.6 (S1) 1,722.4 (PP) 1,728.2 (R1) 1,736.0 (R2) 1,741.8 (R3) 1,749.6

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short  positions at level 1,722.00  with stop loss 1,734.20 and take profit at 1,705.88 are recommended.