The GOLD price bounced towards the upper channel boundary and resistance area of $1,230 and got rejected. The price has turned back lower towards $1,215. Gold bulls need to break above $1,230 in order to confirm that an important low is in.
Blue lines – bearish channel
The Gold price is below the Kumo (cloud) and still inside the bearish channel. Support is at $1,205 and next support is at $1,190. Resistance is at $1,230.
Red lines – wedge pattern
The Gold price broke out of the downward sloping wedge pattern but the tenkan-sen (red line indicator) is providing important resistance and bulls cannot overcome this obstacle…yet. I believe that eventually the Gold price will turn back again upwards and break above $1,230 and move at least towards $1,260.
The material has been provided by InstaForex Company – www.instaforex.com