Gold price reversed strongly from the 61.8% retracement yesterday and broken short-term support levels. However, the price bounced back strongly to re-test $1,200 only to continue back below $1,190 today. The short-term trend is neutral. Breaking below $1,170 and $1,145 are the signs bears are looking for the resumption of the down trend. I remain longer-term bearish targeting $1,050.
Red line = resistance
Blue line = support
Gold price is consolidating near its highs. Support today is at $1,170-74 and resistance at $1,204. From yesterday's high, Gold price is making lower lows and lower highs in the 30 minute chart I show above.
Gold price has reached the 61.8% retracement and got rejected. However, price remains above the ichimoku cloud and above the black supportive trend line. The kijun-sen support is at $1,175. A 4-hour close below $1,175 will signal more downside is to expected towards at least $1,150. If support at $1,145 fails to hold prices and if Gold price breaks below the cloud, then I will have confirmation of the start of the new downward move towards $1,050.
