Gold price is breaking below short-term support levels and is giving bearish signals in the short-term charts also. There is increased probability that the upward corrective bounce ended at $1,178 and that we start a new downward move that is expected to reach $1,050.
Black line = resistance
Blue line = support
Gold price has broken below the Ichimoku cloud. This is a bearish sign for the short-term. Support is found is at $1,146 and if broken I expect to see new lows and $1,100 to be challenged. The trend remains bearish with lower lows and lower highs from $1,178 where we saw the reversal exactly at the 38% retracement. My view remains bearish and in the following chart the $1,050 target is also justified by a longer-term chart.
In the above weekly 15-year chart, we observe that the 50% retracement of the entire rise is below $1,100 and above $1,045. So, I expect to at least test that area of support soon. The most probable retracement for the completion of the pullback is usually the 61.8% retracement but I prefer to see first if we touch the 50% and then the target lower. Therefore, I remain bearish and as I mentioned yesterday, breaking below $1,159 and $1,155 will be a bearish sign. Next, we need to see a break of $1,146 to confirm the down trend.
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