Gold bulls were unable to break above the resistance of $1,150 yesterday, and the rejection pushedthe price lower towards short-term support of $1,125. The inability to break above resistance was not a good sign, but bulls still have one more chance as I expect a new bounce to come over the next couple of days.
Green line – support
Black line resistance
Gold price is trading below the Ichimoku cloud resistance in the 4 hour chart. However the price is still above the short-term support at $1,125. A break above $1,144 will push the price towards the level of $1,150 and, why not, even higher towards the retracement level of 78.6%.
The weekly chart is not very promising but the weekly candle still holds above the tenkan-sen support. The slope of the tenkan-sen is negative and this is not a good sign. However I see as the most probable scenario a push higher towards the weekly kijun-sen resistance. The long-term trend remains bearish as the price is below the Ichimoku cloud.
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