FX.co ★ Gold Wave analysis for September 23, 2014

Gold price continues to bounce higher towards short-term resistance of $1,225-$1,230. Longer-term trend remains bearish. The upward bounce is of a corrective nature and I expect selling pressures to resume and push Gold price to new lows. The sell signal will come once Gold price breaks below $1,215. 

Red line = resistance

Blue line= support

Green lines =price channel

Gold price remains below the Ichimoku cloud and below the red trend line resistance. Resistance is found at $1,230 and support at $1,208. The upward bounce is not impulsive but corrective. As long as Gold price is below $1,230 resistance then we should expect another move lower towards $1,200-$1,190. Short-term sell signal will come once price breaks below $1,215.

The weekly chart above shows my wave count. My longer-term view remains bearish as I believe we have started wave 5 down after completing the triangle wave 4. Weekly rejection by the Ichimoku cloud is another longer-term bearish sign.