Gold price reached the resistance of $1,220, as expected, and got rejected. The trend remains bearish and the support level of $1,200 will be put to the test. If the price manages to hold above $1,200, we could see another new upward reversal that could bring the price above $1,235.
Black line = resistance
Red line = support
Gold price reached the Ichimoku cloud resistance and the level of $1,220 that I mentioned was the target yesterday and got rejected as expected. The trend remains bearish. The price is falling back below the Ichimoku cloud and is now going to test the support at $1,200. Next support is at $1,190. A break of $1,200 will increase the chances of breaking below $1,190 and thus moving towards $1,160-$1,130.
Red line = support
Gold price on the weekly chart remains bearish. The price bounced towards the kijun-sen at $1,220 but got rejected. It is important to see how this week closes. The price is below the Ichimoku cloud and below the kijun-sen (yellow line). The trend is bearish and I expect to see a move towards the red line support at $1,180. This is important support. If this support is held, we could see a strong bounce towards $1,250-60.
The material has been provided by InstaForex Company - www.instaforex.com
