Technical analysis of gold for March 21, 2017

Gold price is turning lower as we predicted in our previous analysis. Gold price is expected to test short-term support at $1,215-20 area. I believe another important low could form at that price area before the resumption of the uptrend. The longer-term trend I believe remains bullish.

Blue rectangle - support

Gold price is turning lower from overbought short-term levels. Price is expected to move towards the 38% and 50% Fibonacci retracement area where we also find the 4-hour cloud support. I expect this support to hold and produce the next leg up towards $1,280-$1,300.

Gold is turning from the daily kijun-sen resistance. Price should find support at the cloud at $1,217. Bulls need to see a higher low being formed and then

a breakout above the recent highs at $1,237. This will be a confirmation of the next upward move starting.

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