Gold - A case for both bull and bear

Both bulls and bears can make a case based on recent price action in gold.

Bearish scenario: The previous swing high (around 1390) was a major top (wave 5) and price has just completed a minor degree 1,2 sequence. The other scenario is that the previous swing high was a wave 3 and price has completed a A, B sequence of a zigzag correction of wave 4 and the C leg could take the price to around 1280.

Bullish scenario: The price has just complete a wave 4 flat correction and has completed a 1,2 sequence of wave 5.

There are other possible scenarios like a triangle wave 4. I will stick to these scenarios for now until price action indicates otherwise.