A wedge that started on April 24 is contracting to a point, indicating a coming strong move.
Until gold gets out of the range, it could be hard to predict the following trend.
However, wave pattern does suggest a downside bias, as a wave (c) that developed from the April 14 high of $1,330.90 seems to be only partially complete.
A bearish target at $1,260 will be established should gold drop below the May 21 low of $1,283.
A rise above the May 22 high of $1,303.50 will confirm the wedge to be bullish, which points a target at $1,330.
The views expressed are his own.
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