Technical analysis of gold for September 29, 2016

The gold price remains in a short-term bearish trend, and we can see another new low towards $1,315 today. Overall, I give little chances of breaking below the important $1,300 level. I believe we should prepare for a bounce back towards $1,350.

The gold price has reached the 61.8% Fibonacci retracement and has broken below the 4 hour Ichimoku cloud. The price has hit the cloud resistance and got rejected. Unless bulls manage to break above yesterday's highs at $1,327, sellers will continue to push this lower towards the critical medium-term support of $1,300.

Red lines - trading range

Black line - trend line support

Green line - trend line resistance

The gold price continues to trade sideways as shown on the weekly chart. There is no weekly breakout above or below the trading range, so traders should remain cautious. Buying near support and selling near resistance has worked so far. A breakout of the range will provide a bigger trend towards $1,450 or $1,200.

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