Gold price is trading below $1,830. Our upside target was at $1,860 while yesterday price reached $1,853. Gold today broke below the tenkan-sen and kijun-sen indicators which provided support at $1,840. This was our first warning that price was vulnerable to more downside.
Gold price is now challenging the 4hour Kumo (cloud) at $1,827. This is key short-term support. As long as Gold price holds above $1,827 there is a chance that price will bounce off cloud support and start a new upward move. Gold bulls need to defend the cloud support. The lower cloud boundary is at $1,820. Failure to stay above it will be a major bearish signal. Resistance is at the tenkan-sen (red line indicator) and at the kijun-sen (yellow line indicator) at $1,838. Bulls need to recapture this level in order to provide us with a new bullish signal.
