Gold price remains near its recent lows. The price should make a short-lived bounce towards $1,120-30 and then a new low towards $1,060-$1,000. A trend remains bearish. However, an overall picture is not that bearish, and I believe we are at the final stages of the bearish market.
Blue line - trend line support (broken)
Gold price is trading below the Ichimoku cloud. I believe we should expect a pullback towards the broken blue trend line and towards the 38% Fibonacci retracement before the final leg down towards $1,000-$1,060. Resistance is at $1,125. Shorter-term resistance is seen at $1,102.
Blue line - support (broken)
The weekly chart remains bearish. Price has broken below the trend line support and I expect a possible back test of this break down and then a move lower that will break below the 2015 lows. Target is $1,000-$1,060. However, I believe that this is not the time to be short as the overall picture analysis tells me that we should be looking for a long-term bottom on gold and not betting on the downside for more than a week period.
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