The Gold price has made new lows earlier today but the oscillators are not following to new lows. The trend remains bearish. There is a bullish wedge pattern in play, and a breakout should signal the start of the next upward leg.
Blue lines - downward sloping wedge
Red lines - expected price path
Gold price is heading towards the lower wedge boundary and the 78.6% Fibonacci retracement. Gold price is expected to touch the trend line and reverse higher. The RSI is diverging and we should soon see an upward reversal. Resistance is at $1,283 and next at $1,290. Support is at $1,271 and next at $1,263.
On a daily basis, the trend is now bearish as the price has broken below the Ichimoku cloud. Resistance is at $1,280-85 where the lower boundary of the Kumo is found. Next important resistance is at $1,290. For Gold to be on a bullish trend again, the price must break above the cloud resistance at $1,315. Important longer-term support is found at $1,245-50 where the longer-term blue trend line comes.
