Gold prices have found very strong resistance to break at 1,395, as it was expected, and now turning lower towards the recent low at 1,372. Yesterday, we bought at 1,380 and sold again at 1,393 with a target at 1,370-75. Prices trade below the trendline resistance and our heading towards the 38% Fibonacci retracement. We expect that if the low is broken, prices will head towards the 50% and/or the 61,8% Fibonacci retracement.

The downward move is strong as any try to bounce is met by more selling. Trend is downward and we believe that 1,370 is going to be tested. 1,380 is short-term support and 1,400 is short-tem resistance. Breaking below 1,380 will make us more confident that 1,370 is going to be tested. If 1,370 is broken, then we expect prices to move towards 1,350.

The daily chart above shows that prices are heading towards the upward sloping blue trendline. 1,350 is a target, if prices touch the support trendline. Our view at 1,430 that prices have topped and that it was time for a pull back have been confirmed. Breaking below this blue trendline will put in danger the longer-term bullish trend in Gold. For now, we remain short as long as prices trade below 1,400 and 1,395 with 1,350 as a target.