Gold price is trading in the middle of the range between important resistance at $1,222 and important support at $1,180. Trend-line support is broken and Ichimoku cloud is being tested. A longer-term outlook remains bearish as the weekly chart does not look good for bulls.
Red line = support
Blue line = resistance
Yellow line = trend line support
Gold price is testing the Ichimoku cloud support. The yellow trend-line is broken. The price is below this trend line and this is not a good sign for bulls. Support at $1,195-90 is critical for the short term. If is gets broken, we will go to $1,180. If $1,180 is broken, we are likely to move to $1,130.
The weekly chart remains bearish after the rejection at the kijun-sen yellow indicator line early this week. Now, gold price is closer to breaking below the weekly tenkan-sen red line indicator. This bearish weekly candle could be the start of a new downtrend to new lows below $1,130.
The material has been provided by InstaForex Company - www.instaforex.com
