Violet lines- Fibonacci retracement levels
Blue lines- bullish channel
Gold price is under pressure. Trend is still bullish as price continues trading inside the blue upward sloping channel. In the near term price is vulnerable to a pull back towards the lower channel boundary at $1,840. Short-term support is found at $1,900-$1,910. Failure to hold above this level will lead price lower towards the lower channel boundary. Gold price trend remains bullish and we still consider this decline as just a pause of the up trend. A weekly close below $1,870 would be a bearish sign and would cancel last week's bullish candle. Gold has risen nearly 400$ over the last few months and the October low. It is very probable that the entire upward move is finished and Gold is making a deep pull back. If this is the case we could see Gold price even below $1,800. It is too soon to tell if a major top is in. As long as price is inside the bullish channel, bulls are in control.
