Nothing much has changed from yesterday in our gold analysis. Volatility is naturally low so prices are lingering around 1б200. The trend in all time frames is downward. Short-term support is found at 1,180 and short-term resistance is found at 1,220.
As long as prices trade below the red downward sloping trendlines, we expect prices to continue to unfold downwards towards our longer-term target of 1,140. The pattern of lower lows and lower highs continues to unfold and support our bearish view. We prefer short positions with 1,220 stop and the 1,180 first short-term target.
Any move above 1,205 is expected to challenge our stop at 1,220.So short-term traders could also use that level as stop. The daily chart continues to support our bearish view. We believe that the move from 1,360 is still unfinished and that is why we expect new lows at 1,140.
