Red lines- bearish channel
Gold price is trading around $1,665. Price is now just below the upper channel boundary of the short-term bearish channel it is in since the beginning of August. The bounce towards $1,660-70 was not a surprise, on the contrary our analysis expected it. Now it is very important to see how Gold bulls react? Are they strong enough for a bigger bounce towards $1,700? Gold price so far seems unable to break above the channel boundary resistance. Bulls need to break above and out of this bearish channel in order to confirm the end of the downtrend from $1,807. If bulls manage to break above the short-term resistance, then we should expect Gold price to move higher towards $1,690-$1,700.
