Gold price has provided us today with a sign of weakness. Price has not only broken below the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). Price has entered the Kumo (cloud) in the 4 hour chart turning trend to neutral from bullish.
The $1,850-55 price area is key resistance. Now we find the tenkan-sen and the kijun-sen at that price level. Bulls need to recapture that level in order to regain control of the short-term trend. If bulls fail to do so, price will remain vulnerable to a move lower towards the lower cloud boundary near $1,828. Key support is at $1,828 at the lower cloud boundary. Breaking below this level will provide a bearish signal. The Chikou span (black line indicator) is below the candlestick pattern. This is another sign of weakness. Unless bulls manage to recapture $1,850-55, Gold price will be pressured to move lower.
