FX.co ★ Gold technical analysis for May 20, 2014

Gold price remains inside the triangle. Price has been rejected at the triangle resistance and pulled back towards the lower triangle boundaries. Support is found at $1,287 and resistance, at $1,310. The trend is neutral as long as Gold price is inside this triangle.

Price has fallen below the Ichimoku cloud favoring bears a bit. However, if support at $1,287 holds, we should expect another bounce upwards towards $1,305. Our longer-term view remains bearish, but as long as price is above $1,268, we could see a strong bounce towards $1,330-40. A downward break of the triangle will increase chances of Gold price challenging the lows at $1,268.

The daily chart shows clearly sideways consolidation of the market. I still see the possibility of reaching $1,340-50 if we do not break the $1,268 low. If we break that low, I expect a sharp move towards $1,240-$1,200 and no chance of moving upwards towards $1,340. Our longer-term target is $1,100.