Gold price remains in a bearish trend, and we can see lower price levels for sure if we break $1,077. However, we must keep in mind that gold price is also very close to the 50% retracement of an entire rise from 1999 to 2011.
Red lines – trading range
Green line – scenario 1
Blue line – scenario 2
Gold price is trading sideways inside a trading range. Breaking above this trading range will imply that scenario 1 is in play. we expect a bounce towards $1,110-20 and then towards new lows near $1,0340-50. If this trading range is broken downwards then scenario 2 will be in play with a new low near the area of $1,070-60.
Red line – long-term support
Gold price remains in a weekly bearish trend and price is expected to eventually push lower once we break support at $1,077. Price is below the Ichimoku cloud and the tenkan- and kijun-sen indicators.
The chart above shows go;d price monthly candlestick. We can see two important facts, whichgold bears should take under serious consideration. We are at the 50% retracement of the entire rise since 1999 and the Stochastic oscillator is gebnerating bullish divergence signals. The stochastic is not making lower lows while price does. Bulls need a monthly close above $1,150 to be serious about a trend reversal.The material has been provided by InstaForex Company – www.instaforex.com
Gold price remains in a bearish trend, and we can see lower price levels for sure if we break $1,077. However, we must keep in mind that gold price is also very close to the 50% retracement of an entire rise from 1999 to 2011.
Red lines – trading range
Green line – scenario 1
Blue line – scenario 2
Gold price is trading sideways inside a trading range. Breaking above this trading range will imply that scenario 1 is in play. we expect a bounce towards $1,110-20 and then towards new lows near $1,0340-50. If this trading range is broken downwards then scenario 2 will be in play with a new low near the area of $1,070-60.
Red line – long-term support
Gold price remains in a weekly bearish trend and price is expected to eventually push lower once we break support at $1,077. Price is below the Ichimoku cloud and the tenkan- and kijun-sen indicators.
The chart above shows go;d price monthly candlestick. We can see two important facts, whichgold bears should take under serious consideration. We are at the 50% retracement of the entire rise since 1999 and the Stochastic oscillator is gebnerating bullish divergence signals. The stochastic is not making lower lows while price does. Bulls need a monthly close above $1,150 to be serious about a trend reversal.The material has been provided by InstaForex Company – www.instaforex.com
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