Gold price has continued lower towards $1,320 inside our target area of $1,330-20 for the pull back we were expecting. Gold price has reached important short-term support. Gold should bounce from current levels, but if we see choppy sideways action, we should then expect another leg lower.
Gold price has broken below the tankan- and kijun-sen indicators as expected. Price is now testing the 4-hour Kumo (cloud) support at $1,323. Next support is at $1,310-06. Resistance is at $1,334 and next at $1,339.
On a daily basis, Gold price has entered the Daily Kumo (cloud) and has turned trend to neutral from bullish. Price broke below both the tankan- and kijun-sen yesterday. This is a bearish sign. Price could move lower towards the lower boundary of the cloud at $1,300. Bulls were warned a couple days ago for a rejection at $1,350-60 area. Risk for bulls is now at $1,300. A break below it will open up much lower target prices.
