Gold price remains in a bearish trend and is now giving new short-term sell signals as the upward bounce is corrective and not strong enough to move past the 38% retracement. More downside movememts are therefore expected with main targets around $1,040-$980.
Blue line – trendline resistance
Gold price remains below the blue trendline resistance and below the Ichimoku cloud. The price bounced towards the 38% retracement level after the big downward spike early on Monday. However, bulls are not strong enough to push the price higher, sellers dominate and are now pushing the price back to the Monday lows. The breakdown level of $1,130 is very important resistance now and a critical level for the medium-term trend.
Blue line – long-term support
Red lines – equal size decline projection
The weekly trendline support is broken. Tenkan-sen and kijun-sen indicators are negatively sloped. The price is below the Ichimoku cloud. An equal decline relative to the one from January 2015 could push the price below $1,000. I remain bearish targeting $1,040 and $980. The trend will change on a weekly close above $1,140.
The material has been provided by InstaForex Company – www.instaforex.com