Gold price bounced as we expected above the short-term resistance of $1,215 and has reached $1,220. However the form of the rise continues to look corrective and this means that once this bounce is over, a new low towards $1,190 should follow.
Black trend line - long-term resistance
Blue lines - bearish channel
Black lines - price expectation
Gold is expected to move to a new lower low towards $1,190. The upward correction can already be complete but I cannot rule out a bigger bounce towards $1,235-40 area. What looks very possible to me is a new low and then trend reversal to the upside.
Gold continues to trade above the weekly Kumo and above the 38% Fibonacci retracement. Support is at $1,180. I believe that a big bounce will come soon once the decline from $1,295 is complete. I believe the decline is not complete yet but I will be focusing on the bullish side of Gold from now on.
The material has been provided by InstaForex Company - www.instaforex.com