Gold price bounced as we expected towards $1,340 on Friday and reversed strongly to give a new low near $1,310 critical support. Friday's high confirms the importance of the $1,350 resistance. As long as we are below it, we should expect price to move towards $1,280.
Black line - resistance
Blue circle - cloud rejection sign
Red line - important long-term support
Gold price remains below the 4-hour Kumo and after bouncing towards $1,340 as we expected has reversed and given a new bearish signal. Price made a new low and approached the green rectangular area even closer. My target remains $1,280.
The bearish weekly candle confirmed the downward move from last week and the weekly close below the tenkan-sen (Red line indicator) implies we are heading towards the weekly kijun-sen (yellow line indicator). Price remains inside the longer-term bullish blue channel. A break below it will open the way for a deeper correction towards the cloud support around $1,200.
