FX.co ★ Gold Technical analysis for September 15, 2014

Gold price is bouncing after it made a new lower low. The trend remains bearish and below short-term resistance levels. Our next target is around $1,200-$1,180. In Ichimoku cloud terms the trend remains bearish and we should expect to see lower levels now that the previous important low at $1,240 is broken. A back test of $1,240 cannot be ruled out.

Red line = resistance

Blue line= support

Short-term resistance is found at $1,238 and at $1,247. Support is found at $1,225. The ichimoku cloud is above current price and all indicators point lower and that trend remains bearish. There is no buy or reversal signal in the 4 hour chart so we remain bearish targeting a test of next important support at $1,180.

Red line = resistance

Blue line = support

In the daily chart above, we see the clear break of the supportive trend line at $1,270. Our latest sell signal was given at that level. There is now increased probability that we have seen the end of wave 4 and we have started wave 5 downwards towards $1,000.