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Gold price forms a short-term bearish channel
Gold price is trading below $1,500 again and as explained in our previous analysis, Gold has the potential to move towards $1,450-$1,400 area as long as price is below $1,535. Short-
term trend is bearish and the weekly indicators show that there are many chances of an important top.
Green lines – bearish channel
Gold price was unable to break above the $1,535 resistance and made a lower high at $1,520. Price has stopped at the upper channel boundary and is reversing. Bears are looking for a pull back at least towards the lower channel boundary. On the other hand bulls want to see price break above $1,520. As long as price is below $1,520-$1,535 resistance area bears are in control of the trend. A break below $1,460 will be another bearish sign that would imply a move towards $1,400 is very possible.
On a daily basis according to the Ichimoku cloud indicator we have a trend change to neutral as price has entered into the cloud. Price also got rejected at the tenkan- and kijun-sen (red and green lines) indicators and this is another bearish warning. Inability to break above the two indicators is a sign of weakness. Support is at the lower cloud boundary at $1,469 and a break below it will be a bearish sign. The view we have from the Ichimoku cloud indicator is not bullish but bears need some confirmation before they get control of the Daily trend.The material has been provided by InstaForex Company – www.instaforex.com
