Gold price has broken to new lows. In our last analysis we said that a new rejection at $1,282-83 would be a bearish signal and that a new low would not be avoided. Trend remains bearish. Although the Wedge pattern was broken upwards, price was not strong enough to break above the short-term resistance.
Red line - support
Gold price is making lower lows and lower highs. Price got rejected at the kijun-sen (yellow line indicator). The trend remains bearish as long as the price is below $1,283. The new low has increased the importance of the $1,283 resistance.
Magenta line - long-term resistance
Gold price remains below the weekly kijun-sen (yellow line indicator). Trend remains bullish and we still consider this as a pullback in a larger up trend. Price is heading towards the blue trend line and the weekly Kumo (cloud) support. This is the last line of defense for bulls.
The material has been provided by InstaForex Company - www.instaforex.com
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