Gold price has fallen towards our support area of $1,330 after breaking the levels we mentioned as critical for the downtrend. Gold price has broken below the Ichimoku cloud in the 4-hour chart and moved towards the target we gave once the support failed. Short-term trend remains down as we noted when $1,375 was broken. Gold has entered a larger degree corrective move down.
Gold has now reached the longer-term upward sloping red trend line support and the base of the start of the previous bullish move. This area is very strong support and I think Gold bulls will defend it strongly. I believe that there are now increased chances of an upward bounce towards $1,350-60 at least.
The long-term daily chart also suggests that Gold has reached important support levels. If these levels are broken we should expect price to move towards the Ichimoku cloud near $1,300-$1,280. I'm now expecting an upward bounce from these levels. I prefer short covering now and taking profits from short positions.
