Gold pulled back to an important support area

In my last analysis of gold (see chart), I predicted a pullback to 1200-1210. This support area has been reached, gold declined to 1199. This level could be the bottom.

 

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First of all, the decline from the top is in three waves [a,b,c (circle)], this follows a rally in five waves [i,ii,iii,iv,v (circle), a perfect completed Elliott wave cycle. The rally to 1246 was wave 1 of a five wave advance, the decline is wave 2, the next move is wave 3 up. Wave 2 could be over because it has retraced more than 61.8% of wave 1, it is in three waves and the MACD histogram at the bottom of the chart is at new low and about to turn up. There is no divergence on the MACD because actual reading measures the third wave [wave c (circle)] which is where the MACD is at its lowet level. The long term rally should resume.

The above references the authors opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

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