Gold price remains in a longer-term down trend and today we take another look in the weekly chart that confirms our bearish view of one more final move lower towards $1,050. The short-term trend has reversed as price has broken the support level at $1,240 and is testing $1,230.
Gold price reversed yesterday and has pushed inside the Ichimoku cloud rendering the short-term neutral from bullish in ichimoku cloud terms. A move below the cloud will change trend to bearish. The sequence of higher highs and higher lows has been stopped with the decline towards $1,225 yesterday. Gold price has short-term support at $1,220 and resistance at $1,235.
Blue line = support
Black line= trend line resistance
In the weekly chart, we see Gold price making lower highs but the lows are on a horizontal trend line at $1,180. This is a bearish formation and if we take into account the ichimoku cloud indicators, then we should expect to see a break of the lows at $1,180 and a move towards $1,050. The Ichimoku cloud in the weekly chart has rejected Gold price and is pointing lower and that more weakness should be expected.