Gold price remains in a short-term bearish trend as price has formed a bear flag as we noted in our previous posts and now it has broken below support and enabled the $1,300 target. We were expecting a move towards $1,300 once $1,321 failed to hold. Gold is heading towards our target.
Blue rectangle - target
Red lines - bear flag
As the bear flag broke downwards, price is heading closer to our $1,300 target where we also find the lower boundary of the medium-term bullish channel. Although Gold price remains in a medium term bullish trend, we warned at $1,340 for a pull back. Gold price has support at $1,300 area and resistance at $1,333. A move above $1,333 will open the way for a new higher high towards $1,350-60 area. Until then short-term trend remains bearish. We also warned last week that the bearish candlestick pattern was a reversal sign and a follow through this week was expected. Bulls need to hold price inside the medium-term bullish channel otherwise they might be in serious trouble.
