Gold price reversed strongly last week and yesterday broke below important support levels and below the recent low at $1,237. This implies that it is very likely the entire upward move that started at $1.045 has ended.
Blue lines - sideways channel
Price has broken below the 4 hour Ichimoku cloud support and below the latest low. This is a bearish reversal signal for Gold. We could see a bounce towards the Kumo (Cloud) at $1,245 but overall I believe we have entered the phase where a pullback towards $1,190-$1,150 will see prices bottom before the next big upward move.
On the weekly chart, we have indications that Gold has topped as well. Oscillators are in overbought levels, candle price action shows signals of reversal and the wave structure of the rise seems complete. At least a back test of the broken wedge and the upper boundary of the Kumo (cloud) is to be expected. So a pullback to $1,200 is very possible. So any upside bounce should now be seen as an opportunity to sell for the short-term pullback.
