Gold has seen a pretty nice recovery from 4400 levels, but notice that the move up so far looks like three waves from the low, reaching right into the 78.6% retracement, which appears to be a very important level. What we have seen in the last few days is a strong reversal back to the lower trend line support.
This suggests the market could be positioned for further weakness, especially if the previously broken trend line now turns into resistance around 5200. We still think that a higher degree wave four correction is underway from the January highs, and there is a good chance that price will continue moving toward the lower side of this range.
Looking at the bigger picture charts and the structure there, we see very strong support around the 4000 to 4300 area
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