Gold price got rejected at resistance yesterday and broke below $1,080 again. This is a sign that a bearish move in gold prices is not over yet and we have not seen an important long-term low yet.
Blue lines - bullish channel broken
Blue line - resistance
Gold price is trading below the Ichimoku cloud and below both the kijun- and tenkan-sen indicators. Gold is still in a short-term bearish trend as long as the price is below resistance at $1,120.
The daily chart above shows Gold price near its recent lows but stochastic is seen at oversold levels. Gold price should bounce strongly upwards towards at least $1,120 in the short term. Daily resistance levels are seen at $1,094 and then at $1,120. This is an area where buying actions should be considered, but not selling actions.The material has been provided by InstaForex Company -
www.instaforex.com
