Gold prices have made a small impulsive move down from $1,256 to $1,233. An upward bounce has followed that made a lower high. Now prices are turning down again and are going to test the lows. If prices manage to break the lows as shown by the red solid area in the chart below, then we will have the start of a bearish pattern with lower lows and lower highs.
If this happens, then we will have seen the first bearish signals of a new downward move at its beggining. We also want prices to break below the intermediate low at $1,220 in order to confirm that the rise from $1,180 is corrective and consists of 3 waves. Short-term resistance is found at $1,256 and short term support at $1,233. Breaking the support levels will push prices towards $1,220. If resistance is broken, we should anticipate prices to test $1,270.
The daily chart continues to support our bearish view. Prices seem weak and unable to break above the black neckline resistance. Additionaly, prices seem unable to reach the important resistance trend line at $1,270. Breaking below $1,228 on a daily level will also confirm our bearish view and that the trend has turned downwards once more. Our longer-term target of $1,140 remains valid.
The material has been provided by InstaForex Company – www.instaforex.com
Gold prices have made a small impulsive move down from $1,256 to $1,233. An upward bounce has followed that made a lower high. Now prices are turning down again and are going to test the lows. If prices manage to break the lows as shown by the red solid area in the chart below, then we will have the start of a bearish pattern with lower lows and lower highs.
If this happens, then we will have seen the first bearish signals of a new downward move at its beggining. We also want prices to break below the intermediate low at $1,220 in order to confirm that the rise from $1,180 is corrective and consists of 3 waves. Short-term resistance is found at $1,256 and short term support at $1,233. Breaking the support levels will push prices towards $1,220. If resistance is broken, we should anticipate prices to test $1,270.
The daily chart continues to support our bearish view. Prices seem weak and unable to break above the black neckline resistance. Additionaly, prices seem unable to reach the important resistance trend line at $1,270. Breaking below $1,228 on a daily level will also confirm our bearish view and that the trend has turned downwards once more. Our longer-term target of $1,140 remains valid.
The material has been provided by InstaForex Company – www.instaforex.com
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