The Gold price made a new low yesterday at $1,237 but the Daily candle closed much higher. Is the low in for Gold? Is the decline over? One thing is for sure, yesterday's reversal came at a very critical long-term support with several indicators pointing out that prices are oversold and a big bounce should follow like the previous times.
Red line - long-term resistance
Magenta lines - bearish channel
The Gold price is preparing a bullish reversal weekly candle. Bouncing off the long-term trend line support is a bullish signal, but bulls will need more follow through. The price remains inside the bearish channel and bulls will need to break above $1,270 for this bounce to move higher towards $1,300. Cloud resistance by the kijun-sen is at $1,300. Support remains at $1,235-37. Short-term resistance is at $1,260 and support at $1,248. I remain bullish Gold.
