XAU/$-GOLD indeed delivered the previously projected Bullish Rally posted as “XAU-USD-GOLD – Bullish Minuette (iii) – Trend Reversal”.
Since then, XAU/$-GOLD punched through Resistance after Resistance but now it seems like there could be considerable signs of Bullish exhaustion, with Volumes Divergence.

It looks like there is still a bit more room on the Up-Side as the Bearish Divergence does not seem to be complete. However, XAU/$-GOLD is now trading exactly at the upper Trend-Line of the Triangular Pattern pointed out previously, for more details please see the Long-Term Analysis posted as “GOLD-XAU/$ – Bullish Primary C – Powerful Impulses – Long-Term”.

The Bearish Levels in focus are 1270.00 & 1286.00. Let’s see why!

Minute i (blue) – Wave Count and Bullet-Points:

• Minuette (i) (black) unfolded as a Wedge, showing Price Action indecision which is typical for this wave.
• Minuette (iI) (black) corrected Minuette (i) (black) with a Zig-Zag, confirming the Inverted Head & Shoulders Pattern which was mentioned previously as well.
• Minuette (iii) (black) is well known for its power and this is exactly what we saw, a 200% reading on the Fibonacci Extensions of Minuettes (i) & (ii) (black).
• Minuette (iv) (black) retraced towards 38.2% Fibonacci Retracements of Minuette (iii) (black).

At this stage, new swings can be unlocked with Traders getting FED Rate Statement out of the picture.

Minuette (v) (black) – Speculation & Projection:

There is a possibility that XAU/$-GOLD could finalize Minuette (v) (black) and thus the complete Cycle for Minute I (blue) at or around either 1270.00 or 1286.00.
The preferred scenario would come from a Bearish Divergence confirmation, typical for a 5^th wave, pointing a Wave Trader towards a better direction.

Minuette (v) (black) – Fibonacci Projections:

• 1270.00 Levels represent 261.8% Fibonacci Extensions of Minuettes (i) & (ii) (black).
• 1270.00 Levels also represent 61.8% Fibonacci Extensions of Minuettes (iii) & (iv) (black).
• 1286.00 Levels represent 341.4% Major Fibonacci Extensions of Minuettes (i) & (ii) (black).
• 1286.00 Levels also represent 100% Fibonacci Extensions of Minuettes (iii) & (iv) (black).

XAU/$-GOLD – SELL Positions:

• Aggressive:
  Entry – 1270.00
  SL – 1282.00 (or higher, depending on individual)
  TP – 1248.00

• Moderate:
  Entry – 1286.00
  SL – 1296.00 (or higher, depending on individual)
  TP – 1248.00

To be noted that the Moderate Entry would be more appropriate since XAU/$-GOLD is well known for having extended 5^th Waves.

Safety Measures:

• When in the green, moving SL to break-even or in profit.
• If Conservative, one would wait for a Bearish Divergence confirmation, a possible Rising Channel Breach or Flag Formation.

Many pips ahead!