Gold price reached a new lower low yesterday after breaking the short-term support at $1,060-65. Besides, it has reached our lower end of the target area touching $1,046. I continue to expect a big bounce towards $1,120-30 and I continue to believe this is not the time to be short or sell gold. This is the time to be looking for an opportunity to open long positions.
Blue line – bullish divergence
Gold price remains below the Ichimoku cloud confirming short-term trend remains bearish. However, despite the price reaching lower lows, the 4-hour stochastic is not following this scenario. There is a bullish divergence. This is not the time to be looking for short positions.
Red lines – declining wedge
Blue lines – projection
Gold price is at the lower wedge boundary. Weekly stochastic is oversold. We could slide lower towards $1,020-30, but in overall this is the time to be looking for an opportunity to open long positions as I expect gold price to make a strong bounce towards at least $1,120-30.
The material has been provided by InstaForex Company – www.instaforex.com
Gold price reached a new lower low yesterday after breaking the short-term support at $1,060-65. Besides, it has reached our lower end of the target area touching $1,046. I continue to expect a big bounce towards $1,120-30 and I continue to believe this is not the time to be short or sell gold. This is the time to be looking for an opportunity to open long positions.
Blue line – bullish divergence
Gold price remains below the Ichimoku cloud confirming short-term trend remains bearish. However, despite the price reaching lower lows, the 4-hour stochastic is not following this scenario. There is a bullish divergence. This is not the time to be looking for short positions.
Red lines – declining wedge
Blue lines – projection
Gold price is at the lower wedge boundary. Weekly stochastic is oversold. We could slide lower towards $1,020-30, but in overall this is the time to be looking for an opportunity to open long positions as I expect gold price to make a strong bounce towards at least $1,120-30.
The material has been provided by InstaForex Company – www.instaforex.com
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