Gold price made a bearish reversal last week confirming a short-term top is in. Price reached the first important support area of $1,270-75 but I believe we should expect more downside in Gold price specially if we see a daily close below $1,270.
Red horizontal line -support
Price is still trading above the 4-hour Kumo keeping the hopes for bulls alive for a move above $1,320. However, the reversal from last week is a strong indication that we should expect more downside closer to $1,250-45 specially if support at $1,270-76 breaks.
We have a bearish divergence in the weekly chart and this is a warning sign for bulls. This could imply that a multi-week correction may start. First target is the $1,245-50 area but we should not rule out a bigger correction pullback towards the weekly Kumo at $1,180.The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Gold price made a bearish reversal last week confirming a short-term top is in. Price reached the first important support area of $1,270-75 but I believe we should expect more downside in Gold price specially if we see a daily close below $1,270.
Red horizontal line -support
Price is still trading above the 4-hour Kumo keeping the hopes for bulls alive for a move above $1,320. However, the reversal from last week is a strong indication that we should expect more downside closer to $1,250-45 specially if support at $1,270-76 breaks.
We have a bearish divergence in the weekly chart and this is a warning sign for bulls. This could imply that a multi-week correction may start. First target is the $1,245-50 area but we should not rule out a bigger correction pullback towards the weekly Kumo at $1,180.The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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