Gold price remains in a bearish trend making lower lows and lower highs after bouncing towards $1,118 earlier this week. The decline continues, although the price managed to break above $1,100 yesterday. The bounce was weak and sellers regained control and pushed the price to new lows.
Black lines – short-term bearish channel
Blue line – trend line resistance
Blue rectangle – possible bounce area
Gold price is trading inside a short-term bearish channel as shown on the 4-hour chart above. A break above the short-term resistance of $1,098 could push Gold price towards the Ichimoku cloud of the 4-hour chart and inside the area of the blue rectangle.
Blue line – long-term support (broken)
Red lines – price projection
The weekly chart remains fully bearish with the price heading towards our longer-term target of $1,000-$980. The price remains below the tenkan-sen and kijun-sen indicators and with the new weekly low we should expect more selling pressures to follow.
The material has been provided by InstaForex Company – www.instaforex.com