Gold price was pushed towards new lows last week following the better-than-expected US Non-Farm Payrolls. In the previous analysis, I mentioned that gold price had to bounce off the area around $1,120-40 in order to avoid new lows. This did not happen. So, bears are still in control.
Blue line – support (broken)
Gold price is below the Ichimoku cloud. The price broke through the trend line support and reached its previous lows in the area around $1,080. A trend remains bearish. I would justify a bounce towards the area of $1,120-30, but only as a short-term bounce before the new selling pressures comes to push prices towards $1,060.
Blue line -weekly trend line support (broken)
Red horizontal line -support of previous low at $1,077.
Gold price remains in a long-term bearish trend as long as it moves below the Ichimoku cloud. The rejection at $1,190 was a sell signal once the price broke below the tenkan-sen (red line indicator). Gold price did not bounce off the blue upward sloping trend-line support, but it broke below it. Gold is now testing a low at $1,077. A short-term bounce could come before a break below that level.
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