Gold technical analysis for March 24, 2016

Gold price broke down yesterday below the sideways channel and confirmed my view that the entire rise from $1,045 is completed. I believe that over the next couple of weeks, Gold price will fluctuate between $1,270 and $1,100. My strategy is to wait and open long positions when price falls below $1,180.

Blue lines - sideways channel (broken)

Price has broken the support channel and it remains below the Kumo (cloud). The short-term trend is bearish. Important high resistance is at the $1,265 level and the $1,260 level. A bounce towards this area of resistance should be a nice shorting opportunity as the entire downward move is expected towards $1,100-$1,150.

On a weekly basis, price has made a bearish reversal and is heading towards our first target of $1,190 where the 38% Fibonacci retracement and the upper boundary of the cloud are found. A pause in the decline should be expected around those levels. My longer-term view remains bullish as I believe Gold has made an important low at $1,045.The material has been provided by InstaForex Company - www.instaforex.com