Gold price has extended its decline towards the $1,100 support. I expect a bounce towards $1,130-40 where the bullish and bearish scenarios will be tested.
Blue lines – bearish scenario
Blue upward sloping line – trend line support (broken)
Red line – bullish scenario
Gold price is trading below the Ichimoku cloud. The stochastics are at oversold levels and turning upwards while price is making new lows. This is a bullish divergence. I expect Gold price to bounce towards $1,130. Minimum bounce expected towards $1,120 where we find the broken upward sloping trend line support. We might get a rejection at that level. Most probable scenario is to see a bounce towards the 38% Fibonacci retracement where we will see the real strength of bulls.
Blue line – support (broken)
The weekly chart is very weak as price has easily broken below the upward sloping blue trend line support. The long-term trend remains bearish as long as price is below the Ichimoku cloud. Medium and short-term trend remain bearish after breaking below $1,140. A bearish target is $1,030-$980.
The material has been provided by InstaForex Company – www.instaforex.com
Gold price has extended its decline towards the $1,100 support. I expect a bounce towards $1,130-40 where the bullish and bearish scenarios will be tested.
Blue lines – bearish scenario
Blue upward sloping line – trend line support (broken)
Red line – bullish scenario
Gold price is trading below the Ichimoku cloud. The stochastics are at oversold levels and turning upwards while price is making new lows. This is a bullish divergence. I expect Gold price to bounce towards $1,130. Minimum bounce expected towards $1,120 where we find the broken upward sloping trend line support. We might get a rejection at that level. Most probable scenario is to see a bounce towards the 38% Fibonacci retracement where we will see the real strength of bulls.
Blue line – support (broken)
The weekly chart is very weak as price has easily broken below the upward sloping blue trend line support. The long-term trend remains bearish as long as price is below the Ichimoku cloud. Medium and short-term trend remain bearish after breaking below $1,140. A bearish target is $1,030-$980.
The material has been provided by InstaForex Company – www.instaforex.com
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