The Gold price continues lower towards our $1,310 target. The trend remains bearish. Price is forming a bullish wedge pattern. I believe it is now time to close short positions and look for a Gold trend reversal at least for the short-term. Once Gold price breaks out above the wedge pattern, we will have our signal. In cloud terms, the trend remains bearish as long as the price is below $1,335.
Blue line - long-term resistance
Black lines - downward sloping wedge pattern
The Gold price has support at $1,307. The rejection at the $1,355-65 area was followed by a deep pull back as expected. Short-term resistance is at $1,322. A 4 hour close above that level will be a bullish reversal signal. The first target of the bounce will be at $1,332 and next - at the cloud resistance of $1,335-40. Gold bears should be very cautious at current levels chasing short positions. I believe this is the time to take profits. A strong bounce is expected if not a full-scale trend reversal.
The material has been provided by InstaForex Company - www.instaforex.com
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