Gold price brake out below the triangle pattern. This is not a good sign for bulls. Inability to produce a bounce even towards $1,200 and the break of short-term support are signs of weakness. However, the most important support is seen at $1,130-50. Losing that level will push the precious metal below $1,000.
Blue lines- triangle pattern
Gold price cane below the Ichimoku cloud and brake the lower triangle boundary. At the same time, we break below the low hit earlier in June. Next important support is seen at the low of $1,140 hit in February. Short-term esistance is seen at $1,170-75.
Blue line – long-term trend line support
The weekly chart remains bearish as the price is below the Ichimoku cloud and below the tenkan- and kijun-sen indicators. The price is heading towards the important long-term blue trendline. A break below this trendline will open the way to $1,000 or even $900.
The material has been provided by InstaForex Company – www.instaforex.com