GOLD Is Trying To Break Out Of The Range-Watch Out For Weakness

Sharp fall on gold seen yesterday from 1600 level with extensions through support line suggests that corrective wave 4 is complete with failure wave (c) at 1617 region. Also notice that recent weakness has extended through the support line of a base channel which is also very important evidence when trying to identify a continuation mode. As such, we think that impulsive price action is underway, now towards 1540. Meanwhile any minor bounce should be wave four in the middle of an impulsive weakness that may find resistance around 1575-1580. Critical level is at 1590; if breached then we will look for even more complex wave 4 but still part of a corrective movement. More Details at www.ew-forecast.com