The bounce in Gold price from $1,215 is clearly corrective. The form of the rise in not impulsive and that is why I expect more downside pressures to push Gold price towards $1,200-$1,180. The trend remains downward according to the Ichimoku cloud 4-hour chart.
Green line = channel
Red line = resistance
Blue line = support
The blue line is the support level at $1,230 that was broken. Price may make a final bounce towards that level but the trend remains fully bearish. The sideways consolidation we are currently in has a corrective form and I expect the down trend to continue. Price is making lower lows and lower highs. The red trend line resistance remains above current price, so does the Ichimoku cloud. All signs point lower for Gold price.
Red line = resistance
Blue line = support
In the 30-minute chart above, we can see a bearish flag being formed. The form of this sideways movement is clearly corrective relative to the impulsive decline. Breaking below support at $1,219 will give me a sell signal and I will expect Gold price to move towards $1,200.
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