Gold price continues to look weak as it has broken below $1,190 and is making lower lows and lower highs. The rounding top at the 61.8% retracement is an early bearish signal that will get confirmed if $1,174 is broken. The short-term target will be $1,140.
Red line = resistance
Blue line = critical support
Black lines = trend support
Gold price has broken the short-term support of $1,189 and is now going to test the second and most important support at $1,174. The topping formation looks like a rounding top with the neckline at $1,174 where the previous low was and where the black trend line is found. The short-term target if prices break $1,174 support is at $1,140.
Black lines = triangle pattern
Red line = support
Gold price has clearly broken down and out of the triangle and is inside the medium term ichimoku cloud support confirming that the trend has changed from bullish to neutral and that soon we could see this change to bearish. If the red trend line fails to hold, the trend will change to bearish. As I said in yesterday's post, I prefer to be short with $1,208 stop as I believe an important top is at that level. We could be at the early stages of a new downard move towards $1,050. I remain bearish.
The material has been provided by InstaForex Company - www.instaforex.com
