Gold price has broken below the triangle consolidation and has given a new short-term sell signal as expected by our analysis. The tend remains bearish and so I still continue to expect Gold price to eventually reach $1,050. The short-term target of the decline that started at $1,255 is $1,140.
Gold price is now in its 5th wave that started at $1,274 and is moving lower as expected. The decline is impulsive as it should be and I continue to remain bearish with $1,140 short-term target. Price is below the Ichimoku cloud and we should note that once the 5th wave is over, we should expect a sharp bounce maybe towards $1,180-$1,200.
Red line = resistance
Gold price remains in a clear bearish trend as shown in the daily chart above. All ichimoku cloud indicators remain bearish as price has broken below the triple bottom at $1,180 and is now moving into uncharterred area since 2010. The decline is expected to unfold towards $1,050 or even below $1,000 as long as price is below $1,255. Daily Ichimoku resistance is found at $1,190. I could not rule out a back test of the break out area at $1,160-70 or even of the triple bottom at $1,180.
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