Gold price made a fake break out and short-term reversal today from $1,224. Gold did not close above $1,222 as bulls wanted and reversed despite a breakout to new short-term highs. This bearish signal could result into a deeper pullback. This week closes are going to play a significant role.
Blue line = resistance
Red line= support
Gold price made a new higher high today but did not manage to get higher or close above the previous high. Gold price is pulling back in what seems to be a fake breakout. Short-term support is at $1,206-$1,200. In case of brakout, I would believe we are going to test the red support line . Ichimoku cloud support is at $1,195-$1,200.
The start of the week has not been good for bulls despite the gap up. The price got rejected at the yellow line kijun-sen indicator and this is bearish. However, it is still too early for conclusions for the weekly chart. For now, bulls need to push and close above $1,222 in order to reach the level of $1,250.
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