Gold price made a new low yesterday at $1,314 and remains inside the trading range of $1,300 - $1,360. Price is at the lower range boundary and long trades have a better risk reward in case prices bounce higher as it remains my favorite scenario as long as we are above the critical support of $1,300.
Gold price is again back below the Ichimoku cloud in the 4 hour chart and this is not a good sign for bulls. However, price remains inside the trading range outlined by the blue parallel trend lines. Trend remains neutral. Price is closer to important support than important resistance. Oscillators are diverging so the chances of a bounce are increased.
Green line -long-term resistance
The weekly chart remains in a sideways move and above the black trend line support. Price is correcting the upward move from $1,200 and price is stalling above the 38% Fibonacci retracement. That is why $1,300 is critical support. A break below will open the way for at least a move towards $1,266-$1,234. A break below the black trend line will also increase the chances of a move towards the weekly Ichimoku cloud and the $1,200-$1,180 area.
