Chart on gold, GS nominating where to watch for a reversal
Gold broke below 1,302 support after having held the level for over a week
- The break of 1,302 opened downside risks to 1,275-1,263. This area includes the trend across the lows since July as well as a 5th wave target from April. This should in theory be an ideal location to watch for signs of a reversal.
- From a wave perspective, getting to 1,275-1,263 could mean completing an expanding flat from January . As such, it will be important to observe whether the recovery from that point onwards takes on an impulsive nature. An expanding flat is a continuation pattern, which in this context means an eventual resumption of the underlying uptrend.
- View: Target/turn neutral, consider bullish exposure between 1,275 and 1,263
