Gold price remains in a bearish trend making lower lows and lower highs. Bulls do not seem strong enough to overcome the first important short-term resistance at $1,175. On the other hand, bears still remain in control of the trend and there are a lot of signs that more downside movement should be expected.
Blue line – trendline resistance
Red line – horizontal resistance
Gold price is being rejected by the blue downward sloping trendline resistance. The horizontal resistance shown by the red trend line that was once support is also very difficult to be broken. Sellers continue putting pressure to gold price. The price is below the Ichimoku cloud as this confirms that bearish trend prevails.
Blue line – long-term trendline support
This week's candle has started on a bearish note. The long-term support is being tested. A break below last week's low at $1,147 will be a huge sell signal with even more bearish implications. A weekly close below the blue trendline will be the first step before the breakdown of $1,130 and the move to $1,000.
The material has been provided by InstaForex Company – www.instaforex.com