Gold weakness continues below our comfort zone and the bullish scenario is now in danger. The price should and must reverse soon to the upside. Otherwise the bullish scenario for $1,280-$1,320 will be canceled. Gold is in a bearish short-term trend and needs to retake $1,250 to change trend.
Black line - price extension targets
The price has broken below the Ichimoku cloud. Short-term trend is confirmed to be bearish. This might put in danger our medium-term bullish view for a move towards $1,280-$1,320. Gold is approaching the $1,220 target where the 2nd leg down will be equal to the first. Critical support for our bullish view is at $1,216. This level should not break. Stochastic is diverging at oversold levels. The RSI has entered oversold levels as well.
The weekly chart for Gold is implying a reversal. Although the oscillators imply more upside, the weekly candle has broken below the kijun-sen (yellow line indicator). The week is not over yet, so the bulls will need to step up today. Otherwise the bullish scenario will be in danger.
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