Gold continues to trade lower towards our second target of $1,290 since it has broken the support level at $1,305. The trend remains down. Gold price continues to trade below the red trend line resistance. The downward move is impulsive, implying more downside even after a bounce.
Gold price short-term support is found at $1,290-80. Short-term resistance is found at $1,305-$1,310. The downward move is extending to lower levels than we initialy expeted. This means that the false break out above $1,355 is truly a fake one, so we should start to look on bearish scenarios in the longer-term.
The daily chart shows how Gold price is approaching important support levels of $1,290-260 where the Ichimoku cloud is. The false break out above the red downward sloping trend line is verified by the strength and size of the decline. Our strategy is to wait for a bounce and then sell.
The material has been provided by InstaForex Company - www.instaforex.com
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