GOLD turned bearish last week and made a sharp decline toward 1300 with the personality of an impulsive price action; a strong and large move in a short period of time. As such, we believe the metal is in a new bearish period, which could bring price back to June lows. We will be looking lower as long as 1434 is in place.

That said, to take advantage of the current down move it’s important to keep an eye on intra-day wave patterns and any evidences of a corrective or contra-trend patterns that will give you an opportunity to join the trend.

On the hourly we see a sideways movement in tight range, which is a very important guideline for a correction, or temporary pause within downtrend. From an Elliott-Wave perspective, we see current pause as a triangle that is a continuation pattern, most likely placed in wave four.

 As such, we anticipate trust out of a triangle into wave (v) that could reach levels around 1280 in the next 24-48 hours once 1300 support is taken out. Gold: 1H