Gold clears 1277, stopping us out today. This rules out wave 4 that we were anticipating at a lower degree. It is quite possible that the metal worked out wave (1) earlier and wave (2) is now penetrating through the fibonacci 0.618/0.786 resistance levels. Also note that the metal is seen testing resistance trend line and a bearish reaction here would still keep the bearish structure intact. Aggressive traders may want to initiate fresh shorts here, stop at 1290, target below 1235; while conservative traders please wait for a bearish signal confirmation on 4H or Daily chart to initiate shorts. On the flip side, a clear break of trend line would press towards 1300 levels, probability is less though.