Gold bounced towards $1,167 yesterday but the bounce was not strong enough to break above resistance of $1,180. Trend remains bearish with increased chances of reaching $1,120. However the bearish side is not to be chased. Traders should be patient and look for bullish signals.
Price remains below the Ichimoku cloud on the 4-hour chart. Trend is bearish. No reversal sign yet. Resistance is at $1,180. This level must be broken for short-term trend to change. Support is at $1,150.
The daily chart continues to show price in a downward sloping wedge. Once this wedge is broken I will expect Gold price to retrace 100% of the wedge and push price at least towards $1,300. Oscillators are diverging and oversold. The next big move will be to the upside.
