Gold price has bounced as we expected but the bounce is not strong enough yet for a clear break above $1,350. This is needed for a new high to be achieved otherwise bulls will be in danger of losing even the critical support of $1,300.
Gold price bounced off the 61.8% Fibonacci retracement as I anticipated but price has found the $1,350 resistance too strong to make a clear break above it and close for a day. Price has broken back below the 4 hour cloud putting bulls in danger. Short-term support is at $1,330. Resistance at $1,350-55.
The weekly candle is forming a long upper tail which is a sign of increased pressure from sellers and the inability of buyers to push higher. However price remains above the weekly tenkan-sen (red line indicator) and as long as we are above that level we should expect more upside. A weekly close below $1,310 we should expect a move at least towards the lower channel boundary near $1,280.
