Gold price has broken below the triangle pattern overnight and is now back testing the triangle break level. Short-term trend is still neutral with a hint of reversing to bearish. As long as price is below $1,208 I believe we are in a topping formation with increased chances of breaking lower.
Black line=support
Gold price has broken the first support level at $1,189 only to bounce back up towards $1,195 to back test the break out. Gold is mainly moving sideways with no clear direction. Support is at $1,185 and resistance at $1,208. Next important support is at $1,177 shown by the second lower black line.
Red line = support
Black line = triangle
Gold price remains above the cloud support and above the red trend line support. Gold price also remains below the important resistance of $1,208 where the 61.8% Fibonacci retracement is found. I believe that once the cloud is broken we will see a strong downward move towards $1,050. I prefer to be short with $1,208 stop and add to my short positions if support at $1,165-$1,170 fails.
The material has been provided by InstaForex Company - www.instaforex.com
