Gold made a new low at $1,320 yesterday and is making a small bounce since then towards $1,340. The trend remains bearish as the price is making lower lows and lower highs. Only a break above $1,350 could give hope to bulls for a new high closer or above $1,400.
Blue lines – bullish short-term channel
Red line – medium-term support
Gold is above the Daily Kumo (cloud). The price is still inside the upward sloping channel. As long as the price remains inside the channel, hopes for a new high near $1,400 are real. Support is at $1,300 and next at $1,250. If broken, short-term support at $1,320 will push the price towards $1,300. Resistance is at $1,347-50.
The weekly reversal candle is an important bearish signal. However, the price is still above the weekly tenkan-sen (red line indicator), so we cannot speak with certainty about a retracement of the entire upward move yet. My longer-term view remains bullish for Gold, and it will be a gift for bulls to see the price between $1,250-$1,170.The material has been provided by InstaForex Company – www.instaforex.com