Gold price has pulled back as expected towards our target area of $1,210-$1,200 yesterday. This bearish reversal from the 50% retracement was a big rejection for bulls. The more price stays below $1,225, the less another move higher towards $1,250 is possible. The longer-term view remains bearish.
Gold price has reached the cloud support on the short-term chart and my black rectangle target area that I posted yesterday. The short-term support is found at $1,200 and an overlap of that price level will diminish the bullish chances of $1,250 dramatically.
The weekly chart turned very bearish by yesterday’s decline as the price got rejected once again at the Ichimoku cloud and at the kijun-sen (yellow line). Gold price failed to break above the 50% retracement and is now reversing. A weekly close below the tenkan-sen (red line) will be very bearish. My longer-term view remains bearish if we break below $1,130 for a final push towards $1,000.
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