Gold prices were very volatile last night, but without breaking below our important support levels. Trendlines where held and so did the potential upward trend. We were expecting at least a new high above 1,266 but our first elliott wave target was 1,294. At that price level wave C was equal to wave A. Prices moved early today impulsively upwards towards 1,298.

Wave C has reached the upper boundaries of the upward sloping channel. Resistance is found at this level and we could expect a pullback towards 1,270-60 area. The upward move from 1,208 is in three waves. Breaking below 1,245 will confirm the end of the upward correction. Otherwise, if prices make a correction only towards 1,270-60, we expect another leg up towards 1,350.

As mentioned yesterday, the downward move from 1,260 was overlapping and labeled as corrective. We were expecting an upward break that finally came and reached our target. This upward move that started from 1,243 was complete in 5 waves at 1,298. Bulls should be carefull as the entire upward correction is likely to be over. The form of the price movement in the next couple of days will give us more info and insights on what to expect next.

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