Technical analysis of Gold for May 23, 2016

Gold price remains in a bearish trend and despite the pause in the decline from $1,290, I expect price to move lower over the coming weeks as the weekly chart shows more weakness should be expected towards $1,200.

Black line - trend line resistance

Blue lines - bearish channel

Gold price is trading inside the bearish channel and below both the black trend line and the Ichimoku cloud. Support is at $1,245 and resistance at $1,260. Breaking below support will push price towards $1,220-30. Breaking above resistance will push price towards $1,275.

Last week's candle closed below the tenkan-sen (red line indicator). This is a bearish sign. I now expect Gold price to move lower towards the upper cloud boundary near $1,180. Only a move above $1,290 will cancel this bearish view.The material has been provided by InstaForex Company - www.instaforex.com