Gold price has managed to reach early Monday’s lows and is bouncing towards $1,100 now. The fact that the early Monday low is held increases the chances of a bigger bounce towards $1,130. However, a longer-term trend remains bearish.
Red line – short-term trend line resistance
In the 15-minute chart shown above, gold price is hitting lower lows and lower highs. The price is testing the short-term trend-line resistance. A move above $1,100 could bring some more buyers and push the price back towards the 1st resistance at $1,117 at the 38% retracement.
Red line – trend line resistance
Blue line- longer-term trend line resistance
Gold price remains below the Ichimoku cloud and the blue trend line in the 4-hour chart. However, the recent price action has brought price above the tenkan-sen (red line) indicator and this could imply a push higher towards $1,120 where the kijun-sen (yellow line) indicator is found. Bears should be very cautious now as we could see a bigger bounce if we break above $1,100.
The material has been provided by InstaForex Company – www.instaforex.com