Gold price has broken the short-term support, as expected, and pushed below $1,200 towards $1,190-80 support area. As long as gold price is below $1,220 and above $1,180 trend will be neutral. These two levels are very important price levels that once broken will provide the next big move.
Blue line = resistance
Red line = triangle
Gold price is forming a triangle pattern on the short-term chart with $1,200 for the upper boundary and $1,194 for the lower boundary. It could also be seen as a bearish flag pattern if we take into consideration the sharp decline from $1,219. The next important short-term support is at $1,180.
Blue line = support
Gold price, as shown in the 4-hour chart above, is making higher highs and higher lows. It has pushed inside the Ichimoku cloud and remains above the important support and previous low at $1,180. As long as price holds that support level, bulls could feel safe. If support is broken, price will push below the cloud and it would be a bearish signal that will push gold price towards $1,140 at least. Until then I prefer to be neutral or bullish with $1,180 stop.
The material has been provided by InstaForex Company - www.instaforex.com
