Gold spiked up after FOMC to 1320. However it looks like the short term top is done at 1320, and now bears are back. There are a few technical studies suggest that the top is in:
– ABCD harmonic pattern
– 0.618 Fibonacci retracement from 1346 to 1281
– Evening Star Pattern appears at the strong resistance, which is a confluence of 0.618 Fibonacci retracement and upper channel line
– Bear flag pattern
– Bearish divergence
If price can’t hold the support at 1310, I suspect that the short term uptrend from 1281 is over and downtrend will most likely resume.
Elliot rules say the correction is often in a zigzag mode A-B-C. If you consider the whole uptrend from 1160 to 1346 as an impulsive wave, then the correction from 1346 should be a zigzag style with three waves A-B-C. The A-wave is from 1346 to 1281. And if our assumption that the top is in at 1320, that would conclude the B-wave from 1281 to 1320. The C-wave would likely start from 1320 down to 1255-1260.