The gold price continues making lower lows and lower highs. The price has reached the short-term support area of $1,300-$1,310 and remains in a bearish trend. Gold is expected to move lower towards $1,280 in order to complete the decline from $1,360. The $1,200 level is the next important support.
The green rectangle - support area
Gold price has reached the support area of $1,310-$1,300 and is trading below the 4 hour tenkan-sen indicator (the red line). I expect that the price will break below $1,300 with most probable support holding at $1,280. After that, a bounce from that area is expected. However, if the price breaks below $1,280, we should expect the $1,200 level to be seen next.
The blue lines - bullish channel
On a weekly basis, the target of $1,280 is still open. At that level we can find the weekly kijun-sen indicator (yellow line) and the lower boundary of the blue upward sloping channel. If price breaks below the channel, we should expect a deep retracement towards the weekly cloud at $1,200.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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