Gold price has stopped its decline around the 61.8% Fibonacci retracement and our $1,245 target since $1,280. Now we expect at least a short-term bounce that will test the important $1,260-70 short-term resistance.
term. I expect Gold price to bounce towards the Kumo (cloud) near $1,255-60. This is important short-term resistance. If broken,we could see a bigger upward reversal. If price gets rejected, we should expect one more leg down towards $1,200-$1,180.
Blue line - long-term support
Red line - short-term support
Gold price got rejected at the black trend line resistance. Price as expected is testing weekly cloud support and there are initial signs of a bounce coming. Kumo support is important and it looks like that price is respecting support. I expect a bounce from this area. It could be a big longer-term reversal, so I would look for new additional longs. I remain longer-term bullish.
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