Gold price continues to slide lower after making a high at $1,222. Short-term support at $1,200 was broken and price fell towards $1,185 only to bounce back towards $1,195 but still below $1,200. Short-term trend is bearish and I expect this downward correction to reach $1,173 or $1,180 before it resumes the uptrend.
Blue trend line = resistance
Gold price is below the blue trend line resistance and as long as it trades below we should expect a move lower towards $1,173. Support is provided by the cloud and by the 61.8% Fibonacci retracement. Once this decline is over, I expect another leg higher towards $1,250. The deeper this correction is, the lower the target of the next upward leg.
The longer-term view remains bearish as price is below the Ichimoku cloud which is found at $1,280 and below the kijun-sen at $1,240. I'm neutral as long as Gold price is above $1,140 and I believe we could see an upward move towards $1,140 before the resumption of the down trend.
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