Gold price remains in a downtrend as it has given a new lower low earlier this morning. The wave structure suggests we are at the final stages of the longer-term downward move that started from around $1,900. Our target remains near $1,000.
Green lines = price channel
Red line = resistance
Blue line = support.
Gold price remains below the Ichimoku cloud and inside the downward sloping green channel. Support is found at $1,208 and resistance at $1,220-25. A bounce towards the resistance could be justified and we should take this opportunity to sell as the trend remains bearish. Our short-term target if we reach $1,220 is at $1,200-$1,180 as long as our short-term stop at $1,230 is not broken.
In the weekly chart above, I show my elliott wave count. Price is below the Ichimoku cloud and has broken out of the sideways triangle wave 4. Wave 5 is under way towards $1,100 and $900. We remain bearish.
