Gold price hit a new low yesterday and remained in a short- and long-term bearish trend. Prices are moving towards lower lows and lower highs. However, the risk reward for going short at these levels is not favorable. It is preferred to stay neutral and wait for the buy signal. Gold is near its end of the bear market.
Red line - resistance
Gold price is trading inside the bearish channel and below the Ichimoku cloud in the four-hour chart. A stochastic oscillator is at the oversold levels providing a bullish divergence, so a bounce towards resistance of $1,090-$1,100 is justified. Downward targets are seen at $1,045 plus or minus 10$.
The weekly chart above shows gold price remains in a long-term bearish trend. The price is below the weekly cloud and tenkan- and kijun-sen indicators. The trend is clearly bearish with the lower channel boundary near $1,045. However, stochastics are entering the oversold levels. Once we see the stochastic turning upwards and moving above 20, we should be ready for a strong bounce. This is expected to come within the next 2 weeks.
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