06.05.201510:02 Forex Analysis & Reviews: Gold wave analysis for May 6, 2015

Gold price has most probably made at least a short-term top at $1,199.50 after a 5 wave decline. The upward bounce was a three wave move that reached the target of 61.8% retracement. I believe that now it is time to go short again with $1,150 as a target for the short term. Support is at $1,185. If this level is broken, sellers should add it to their short positions.

Blue line = trend line support

Gold price has also broken the blue trend line support from $1,170. The price is getting rejected once again by the Ichimoku cloud. The 61.8% retracement was the level to sell. Support is at $1,185 and I would add this level to short positions if the price broke below it. The minimum short-term target is at $1,150 specially if the price breaks below $1,170.

The weekly chart remains bearish as the price is still below the Ichimoku cloud and below the yellow line kijun-sen indicator. Weekly support is at $1,170-80 area. A break below this level will push gold price at least towards $1,150. Critical longer-term support is at $1,130. Breaking below that level will push gold to fresh lows at $1,000 or even $900.