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16.08.2013 12:40 PM
Gold Elliott wave analysis for August 16, 2013

Yesterday, gold back tested the broken downward sloping trendline and exploded upwards making a higher high above 1,351 resistance. This gives bulls hopes for an extended upward run up to 1,380-90 and why not higher. The rising pattern canceled all bearish scenarios as resistances were broken. As mentioned in previous posts, 1,351 is important resistance and if broken prices would start a move towards 1,380-90. Support levels at 1,315 and 1,300 were held and our positions were stop reversed at the 1,351 resistance.

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The short-term support is now found at 1,333 and then at 1,322. The short-term resistance is found at 1,380-90 area. We might se a small pull back towards 1,350 but it is not necessary in order for this upward move to continue.

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The entire move from 1,180 to 1,365 could be counted as an upward 5 wave move but one that is not complete yet. The latest upward wave 5 from 1,270 is only half way complete and that is why we target near 1,400 for completion of the move. The wave formation is not perfect as wave 4 is much bigger than wave 2, but no elliott rule is broken so we keep things simple for now. We are mildly bullish targeting 1,380-90 and with 1,320 stop.

Summary
Urgency
Analytic
Alexandros Yfantis
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