Gold price has given a short-term sell signal yesterday by breaking below $1,222. Earlier today, it has also broken below support at $1,215. Right now, Gold price is making new lows and following our expected move lower towards $1,200-$1,190. We noted in our previous analysis that the upward bounce was of a corrective form and that downward pressures were going to resume.
Green line = price channel
Gold price did not manage to bounce higher towards our $1,240-50 target and gave several sell signals yesterday by breaking below support at $1.215. The trend remains clearly bearish as price is below the Ichimoku cloud and still inside the downward sloping channel.
Our longer-term view remains bearish and that is why we prefer not to trade any upside bounce but follow the trend on signs of weakness. The long-term taret I have is at $1,000 and we will have confirmation for that level when we break below the lows at $1,180. We are very close to testing this level. We remain bearish and a daily close below $1,208 will push gold price towards $1,180.
The material has been provided by InstaForex Company - www.instaforex.com
