GOLD – Short term correction could extend with another down leg wave [c]
A larger wave IV corrective wave is underway from 1921 (Sep’11 high) which has the potential to test 1460/1308 on multimonth basis (Alternative view is that a wave (5) rally is underway for a target above 1921). The 1825/1850 resistance would remain as tough barrier in the medium term ahead of major 1921. A break below 1645/1630 would renew the bear trend toward 1585/1527 initially.
The metal’s reversal from 1796 could be a wave X correction. It is holding above 1698 for the past few days. The 1731/1754 resistance looks to cap strength in the immediate term. A break below 1698/1690 would deepen the correction toward 1670/1645. Bulls need to clear 1775/1796 to renew the uptrend to/toward 1825/1850. A break below 1645/1630 however signals a large triangle scenario and refocuses on 1585/1527.
