Yesterday, gold prices did not manage to break above resistance levels at 1,395 or 1,400. We were bearish and we still remain with 1,350-60 as our first target to take partial profits for our short positions. Since prices got rejected near the resistance, we were confident that all that prices needed to fall was giving them some time. Prices are now below the short-term support level at 1,382 and as long as they trade below yesterday's highs there is a high probability that we will see 1,350-60 soon.
In the daily chart we continue to see the upward sloping blue trendline as the most possible target to make a pause in the decline. This is important support that is rising as days pass by. The longer-term trend will be determined at that price level. If that support trendline is broken, it is very possible for the lows to be tested.
Concluding we remain bearish as long as prices trade below 1,390-95 and we target at 1,350-60. Breaking below the blue upward sloping support will push prices towards 1,300. Until then we move our stops lower and target to close half of our positions near 1,350-60.
