Gold price is testing the important support at $1,180 once again. The rejection at the resistance of the 61.8% retracement was an important bearish signal and I continue to lean on the bearish side looking for a test of $1,130 at least.
Gold price has moved back towards the lower boundaries of the ichimoku cloud and has marginally broken out and below the cloud. This is a bearish sign. Combined with the rejection at the resistance area I mentioned a few days back, the outlook for the coming weeks is not good for bulls. Strong resistance is at $1,200. Strong support at $1,180. Bears may be in control for now but not out of danger of being stopped. Bears will get confirmation if support at $1,180-70 is broken. Bulls on the other hand will get confirmation if price breaks above the 61.8% retracement.
Red line = support
Gold price in the 15 minute chart remains in a short-term downtrend. A break below $1,184 will give a sell signal with a target at least at $1,178. This intraday sell setup is valid as long as gold price does not break above the recent high at $1,190.
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