On the intraday chart of our precious metal, Gold looks to be in an impulsive wave to the upside from the lows, now already in blue wave V, which makes us think that the price can now make a corrective retracement. We see resistance for the final wave V around 1275 from where a sharp fall may follow, if we consider an ending diagonal pattern in the final wave.
The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when the price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns.
An Ending Diagonal Pattern:
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