Gold price was under pressure yesterday. As we mentioned in previous posts, if price is below the tenkan-sen (red line indicator), Gold will be vulnerable to a move lower towards the lower cloud boundary. Yesterday Gold price touched the lower cloud boundary at $1,942. Today price is bouncing off the cloud boundary. Price is still inside the Kumo (cloud). Trend is neutral. However with price below both the tenkan-sen and the kijun-sen (yellow line indicator), Gold is vulnerable to more downside. The Chikou span (black line indicator) is below the candlestick pattern (bearish). Unless bulls manage to recapture at least the tenkan-sen soon, we should expect to see new lows in Gold towards $1,900. The tenkan-sen provides the first resistance at $1,960. Bulls have a lot of work to do in order to the Ichimoku cloud indicator to turn bullish in the Daily chart.
