Gold is Going Down in Waves

Gold went up in three waves during the month of August after a dramatic collapse in previous months. In the same fashion it has been going down since 21^st of August when the top was made at 1170 level. The first wave formed from the 21^st to 24^th of August where it found short term support at 1145. It formed a bullish pin there. 

However, price made another wave down in the next couple of days from 25^th to 26^th of August. It then went up to test previous support that became resistance. 1145 was well defended by gold bears and price after ranging till the 9^th of September proceeded to fall (third bearish wave). 

It looks like price has found its short term support at 1100 level. Bullish pin at support on Friday indicates that price may go to its previous support of 1115-1116 level (now resistance). 

Looking at a broader technical picture, it does not seem that the move down is over. We might expect one more wave down that would take the price of the commodity to 1080-1070 area. This is the area where gold bottomed in the months of July and August. The fall should stop at that area.