Gold Elliott wave analysis for August 19, 2013

Gold continued to move towards 1,380.00 as it was expected and reached our target of the break out from 1,351.00. Resistance is strong at this price level and I expect the price to pull back. Bulls should be cautious as the pull back could push the price towards 1,340.00 or lower.

The rise from 1,270.00 is most probably in 3 waves and we could see a pull back towards 1,360.00-50 and then a final push higher towards 1,400.00. However, we cannot rule out the scenario that the entire move is over. This implies that Gold prices will enter a period of price correction with tendencies towards 1,300.00. For the time being support is found at 1,367.00 and if it broken we will see a test of the 1,355.00. Breaking below that level will probably push the price towards 1,340.00.

Concluding, we are changing from being bullish to neutral as either we are near a top or prices have already topped. Support at 1,367.00 should be respected and if broken I will exit the position I reversed from 1,351.00. Prices could make a new high towards 1,390.00 where profits are best to be taken. We are now neutral and look to take our profits.