Gold price has not made any upward bounce yet but continued its downward trend lower towards $1,240. This was our short-term target in case the triangle was broken and it has been achieved. The trend remains down. Prices continue to make lower lows and lower highs. Price is still below the Ichimoku cloud resistance and I believe there are increased chances of a bounce upwards now rather than going straight to $1,200-$1,180.
I prefer taking at least partial profits at current levels and reducing my downside exposure. Short-term support at $1,240-$1,230. Short-term resistance is found at $1,250 and $1,260. The upward bounce that I expect should move Gold price towards $1,270.
In case this downward move is part of a bigger triangle formation, then I would expect Gold price to even bounce towards the daily Ichimoku cloud near $1,300. I believe that anyone having a short position should take partial profits or at least lower their protective stops to lock in profits. The bounce could bring us back towards $1,300-$1,330. The longer-term view I have remains bearish.
