In the past 3 months Gold has been so hesitant to choose the direction, it just kept drawing zigzags - they are all over the place. Single, double, and even triple. The last movement from 1307 top to 1201 today was no exception. This is a double zigzag with a contracting triangle acting as B wave.
I believe:
1) that the movement to 1200 is over because we have achieved 200% extension from A wave and at the same time hit a nice round support value. Given the market hesitant behavior it will be quite hard to make wave C even longer.
2) the zigzag we've just obtained is likely to become part of a larger correction pattern. We therefore are going to observe the formation of wave B going upwards. In the case the market is trying to draw another zigzag we are likely to obtain a correction to 1250, and then going down to 1150.
I believe:
1) that the movement to 1200 is over because we have achieved 200% extension from A wave and at the same time hit a nice round support value. Given the market hesitant behavior it will be quite hard to make wave C even longer.
2) the zigzag we've just obtained is likely to become part of a larger correction pattern. We therefore are going to observe the formation of wave B going upwards. In the case the market is trying to draw another zigzag we are likely to obtain a correction to 1250, and then going down to 1150.