Gold price remains inside the downward sloping channel and below short-term resistance at $1,200-$1,205. However, bears have not managed to break below support at $1,170 yet. Gold price has been trading within a trading range for more than one month. This has been frustrating, but traders should remain calm and patient. Longer-term view remains bearish. The bearish scenario of new lows below $1,130 is preferable.
Blue line = support
Black lines = bearish channel
Gold price remains below the short-term Ichimoku cloud. The price remains also inside the black bearish channel. However, critical support at $1,170 remains intact. Short-term support is found at $1,180 while short-term resistance is at $1,197. If short-term resistance is broken, we will find next resistance at $1,200-$1,205. If support is broken, we will see the next support at $1,170.
The weekly chart remains fully bearish. The price got another rejection at the Ichimoku cloud as expected. The price did not manage to reach the 61.8% retracement. It closed the previous week below the red line tenkan-sen indicator and this is a bearish signal. The rejection at the kijun-sen is important too and that is why I remained bearish for so long. Bulls do not seem to be strong enough to reverse the longer-term bearish trend. In case the huge support at $1,130 gets broken, we will go towards $1,000.
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