Red lines- bearish channel
Green line- support
Gold price is trading around $1,637. This week has started on a negative note following last Friday's selling pressures. Gold price has turned lower from $1,674 and is now very close to key support and double bottom levels. Gold price remains inside the bearish channel and as long as this is the case, we will remain bearish. So far we see another lower high formation and if it is combined with a break below the green support trend line, then we will get a new bearish signal. Gold remains vulnerable to a move towards $1,500. Bears need to push below the double bottom support and continue forming lower highs. On the other hand bulls need to step in now and push price above $1,674. With a higher low if Gold price breaks above $1,674, we will get a reversal signal that will increase chances of a break out above the bearish channel.
