FX.co ★ Technical analysis of Gold for May 27, 2016

Gold price made a new low yesterday as price remains inside the bearish channel. Gold is expected to make a bounce soon. The downside has not much more potential at this stage.

Black line - long-term resistance

Blue lines - bearish channel

Gold price is still below the Kumo and inside the bearish channel. Resistance is at $1,225 for the short-term. Next resistance is at $1,235. Support is at $1,200-$1,190.Stochastic is oversold and diverging.

The weekly view remains strongly bearish as price is expected to reach the upper Kumo boundary and the kijun-sen (yellow line indicator) near $1,180. Trend is bearish. The decline from $1,295 is the big pull back we have been waiting before the next big bullish move in Gold.