Gold price is trading around $1,974. Price has provided a new bearish signal earlier today as price broke down below the 4 hour Kumo (cloud) support. In previous posts we warned that key short-term technical support is at $1,990 and a move below this level would be a sign of weakness. Short-term trend according to the Ichimoku cloud indicator is bearish again. After the first move down towards $1,968, price bounced back up towards cloud resistance and got rejected. Price is very close to making a new lower low. Price is vulnerable to more downside. Price is below both the tenka-sen (red line indicator) and the kijun-sen (yellow line indicator). The tenkan-sen is also very close to crossing below the kijun-sen providing a new bearish signal. The Chikou span (black line indicator) is also below the candlestick pattern and the cloud. The picture in the 4 hour chart is bearish according to the Ichimoku cloud indicator. As we mentioned in our technical analysis the most probable scenario is for price to continue lower.
