The gold price got rejected yesterday at the Inverted Head and Shoulders neckline. The price remains in a bearish trend and once we break support at $1,077, we should move lower towards $1,040. Important resistance remains at the level of $1,105 that bulls need to break for the gold price to move higher towards $1,130.
Green line – neckline resistance
Blue line – trendline resistance
The gold price remains below the cloud resistance and below the blue trendline resistance. The price got rejected on the 4-hour chart at the Ichimoku cloud and at the neckline. The Inverted Head and Shoulders scenario is not playing out as expected and it was never triggered. The trend remains bearish. I expect more selling pressures to arise.
Red lines – price projection after break down
Blue line – long-term support broken
The weekly chart remains bearish. The price has not managed to stage any considerable bounce towards $1,130. Target remains near $1,040 and even towards $980. The long-term trend remains bearish. I remain bearish.
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