FX.co ★ Technical analysis of Gold for May 19, 2016

Gold broke below support and out of the triangle pattern yesterday as we expected. The bearish signals were there. Gold is in a bearish trend and could see the $1,237 support being tested. Important resistance is the $1,275-80 area now, and as long as the price is below it, the trend will remain bearish.

Black line - resistance

Green line - support

Gold has broken below the green trendline support and below the Kumo (cloud). The trend is bearish. I expect the price to pause the decline for a few hours and trade sideways before resuming the move downwards toward $1,237-40.

On the daily chart, Gold has closed even below the kijun-sen (yellow line indicator). This implies that the upper cloud boundary at the $1,240 area will be tested shortly. I remain bearish.