Gold price had broken the triangle pattern and pushed below $1,180 on Friday producing a new sell signal. Now, the price is testing the breakdown area. As long as the price is below $1,200, bears are in control with $1,130-40 as 1st target area.
Blue lines = triangle pattern
Gold price has broken the lower boundary of the triangle pattern. The price is below the Ichimoku cloud. It is making lower lows and lower highs in the 4-hour chart. Short-term support is at $1,175, which is the last weeks's low. The price is back testing the breakdown area. It is testing the triangle from below.
The weekly chart does not look good either. After 3 weeks, the red line indicator tenkan-sen was broken. The weekly candle closed below the tenkan-sen and this is a new bearish signal. Overall the weekly chart is bearish as price has reversed from the 50% retracement, price remains below the Ichimoku cloud and below the kijun-sen. If $1,130 is broken I expect to see a push as low as $1,000 or even $900.
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