Gold price hit another lower low yesterday breaking the short-term triangle pattern and support at $1,150. The price moved as low as $1,143. This is an important support area. It is difficult to break such a long-term support. A breakout will open the way to a push towards $1,000.
The downward sloping trendline provides resistance since $1,205. The rice remains below the Ichimoku cloud confirming that the trend is bearish. The upward sloping trendline is the lower boundary of the triangle that was broken yesterday and provided us with a new lower low.
The weekly chart is breaking below the long-term trendline support. This is a bearish sign. The red ichimoku indicator tenkan-sen is now with a negative slope. If this week's candle ends lower, this bearish sign will be confirmed. More downside is expected for gold, but bears should also be very cautious and lower their protective stops.
The material has been provided by InstaForex Company - www.instaforex.comFor detail explanation and best discovery on daily market trends and news you may visit via Gold technical analysis for July 16, 2015 . Thanks for your support.
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