The Gold price broke down yesterday to new short-term lows as expected. The Gold price has broken below both the 4-hour and Daily cloud support and below the upward sloping short-term trend line support. A bounce could be seen for a couple days but we remain bearish as long as the price is below $1,348.
Red lines - trading range
Black line - short-term trend line support
The Gold price is still in the long-term trading range. Gold is moving lower after getting rejected at $1,365 for another time. We warned that this rejection was a very bearish signal and that the inability to remain above $1,355 was the confirmation that we are going to see lower levels. Support remains at $1,300-$1,310. Resistance is at $1,340-48. Currently, we are in the middle of the trading range and between resistance and support levels. Traders should better take partial profits from our short idea and wait for the rest to see if we re-test support or resistance.
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