Gold price at its weekly lows
Gold price today broke below the double bottom formation and the November low at $1,763. Price has sharply moved lower towards $1,730 as expected by our previous analysis, making a low at $1,716. Short-term trend remains bearish.
Blue lines – bearish channel
Red line – long-term support trend line
For some time in our analysis we pointed out that as long as price is below $1,850 the key pivot level, price was vulnerable to a move towards $1,750-$1,700. Also our Ichimoku cloud analysis has also pointed out that Gold was about to test major cloud support around $1,700. Today Gold price has reached the lower channel boundary and is very close to the long-term upward sloping support trend line at $1,690. So far there is no sign of a reversal or that of a major bottom.Gold bulls tried mid week to push price back above $1,820-30 but failed to do so. Price made another lower high and is now making lower lows. The Daily RSI is still making new lows and not in oversold area. Resistance is found now at $1,760, previous support. Any bounce should find strong resistance at $1,760 and next at $1,810.
The material has been provided by InstaForex Company – www.instaforex.com