FX.co ★ Gold analysis for January 23, 2014

Gold price has made a double top around the price level of $1,260. Short-term trend has changed to down as the price has broken short-term support trend line. There are more chances now that the upward corrective move from $1,180 is over than incomplete. We believe the top is in.

Gold price is making lower lows and lower highs. Short-term price has moved below both the purple trend line and the 34 MA. Short-term support is found at $1,230 and short-term resistance is found at $1,250. We remain bearish both in short- and long-term.

Price got rejected at the black neckline resistance and is now expected to make a downward impulsive wave. A daily close below $1,230 will confirm our bearish view. Making another new higher high towards $1,270 has now lost many possibilities. It is more probable to see the price move towards $1,200 which is our first target. Our longer-term target is $1,140.