Gold price has broken below the $1,340 level. The price is heading towards the cloud support as expected after getting rejected once again at the $1,350-60 area. The price got rejected for the second time at the long-term resistance level.
In the 4 hour chart, Gold price is still above the Ichimoku cloud (Kumo). Trend is still bullish in cloud terms. Support is found at the $1,328-$1,319 area. This cloud support if broken will make the trend bearish for the short-term. Resistance is found at $1,344 and at $1,351. Bulls need to break at least above $1,344 to regain full control of the trend.
Magenta line – long-term resistance
Blue line – long-term support
On a weekly basis, we have started this week with another rejection at the long-term resistance trend line. Support is at $1,319 initially and next at $1,300. Breaking below $1,300 will bring the price towards the important cloud support area that expands from $1,290 to $1,240. A breach of $1,290 could mean a move towards $1,240 or even the long-term trend line. Bulls need to clearly break above $1,350 and hold it. If this is the case, we will have a strong run to $1,400-$1,430.
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