Gold bounced towards short-term resistance of $1,350 yesterday as we expected and is turning back down towards its recent lows. The trend is bearish for the short term, and this pullback could extend much lower.
Blue lines -bullish channel
The price has broken below the 4-hour Kumo confirming a bearish short-term trend. The price remains inside the bullish channel, but I believe a pullback towards the 38% Fibonacci retracement is very likely. If that support does not hold, we should expect Gold to move towards $1,250-70, where the 61.8% retracement of the latest rise is found and also the 38% Fibonacci retracement of the entire upward move from $1,045.
Gold is expected to at least test the weekly tenkan-sen near $1,280. However, all this will happen only if we break below $1,300. As long as $1,300 is not breached, bulls still have hopes of a new higher high towards $1,400. I remain longer-term bullish. A pullback towards the weekly Kumo will be a gift for Gold bulls.The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Gold bounced towards short-term resistance of $1,350 yesterday as we expected and is turning back down towards its recent lows. The trend is bearish for the short term, and this pullback could extend much lower.
Blue lines -bullish channel
The price has broken below the 4-hour Kumo confirming a bearish short-term trend. The price remains inside the bullish channel, but I believe a pullback towards the 38% Fibonacci retracement is very likely. If that support does not hold, we should expect Gold to move towards $1,250-70, where the 61.8% retracement of the latest rise is found and also the 38% Fibonacci retracement of the entire upward move from $1,045.
Gold is expected to at least test the weekly tenkan-sen near $1,280. However, all this will happen only if we break below $1,300. As long as $1,300 is not breached, bulls still have hopes of a new higher high towards $1,400. I remain longer-term bullish. A pullback towards the weekly Kumo will be a gift for Gold bulls.The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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