01.10.201411:07 Forex Analysis & Reviews: Gold Wave analysis for October 1, 2014

Long-term review

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Gold price had a very volatile session yesterday. It made a new lower low at $1,204 and then spiked up towards $1,220 and today is back down below $1,210. Selling pressures continue and do not let the precious metal push above resistance. The trend remains bearish and it is very probable to see a test of $1,180 very soon.

Blue line = support

Green line = price channel

Gold price remains below the Ichimoku cloud and inside the downward sloping channel. Price has broken below the support and double bottom at $1,207 and is now trading marginally lower. Yesterday, the spike up towards $1,220 was short-lived and the rejection at that area confirmed that the trend remains bearish.

I continue to believe we have started wave 5 down and we should soon see a break of the lows at $1,180. I expect Gold price to move towards $1,000 as I believe we are making impulsive waves down and the corrective sideways move is over. The trend is clearly bearish and price even in the weekly chart as shown above is below the Ichimoku cloud after being rejected and confirming our bearish view.

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