Gold price has bounced strongly yesterday above $1,200 and has now reached the important downward sloping channel boundaries at $1,213. Trend remains bearish in the longer-term as price is below the Ichimoku cloud. Our longer-term view remains bearish as long as price is below $1,233.
Blue line= support
Green line= price channel
Gold price is testing the downward sloping channel. Just above the upper channel boundaries is the Ichimoku cloud resistance. So the area between $1,213 and $1,222 is strong short-term resistance. Support is found at $1,180 and I still expect this level to be challenged once again.
Blue line = support
In the short-term chart as shown above, important short-term support levels are the $1,202.50 level from the horizontal support trend line, and the $1,206 level from the upward sloping blue trend line. Breaking those two support trend lines will confirm that bears are again back in control and that a new lower low below $1,180 should be expected.
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