Gold price continued a decline yesterday making a new lower low. It has also broken below the previous lows made in early June. This was another bearish signal that confirmed our bearish view we have for the last couple of weeks. Our 1st target has been achieved at $1,240. So, now we are waiting to see a move towards $1,200 at least.
Red lines = resistance
Blue line = previous June low at $1,240
With the low at $1,240 broken, we get another confirmation that the trend remains bearish. According to the Ichimoku cloud indicators, we should expect more downside pressures towards $1,200-$1,180.
Light Blue lines = suppot
Red line = resistance
Dark blue = Long-term resistance
In the weekly chart above, we see Gold price has broken below the blue support lines and we expect to see a move towards $1,200-$1,180 at least. The trend remains bearish and we prefer to remain short. Short-term resistance is found at $1,250. If broken, we could see a bounce towards $1,280 or $1,300.
