Gold Bulls Need To Be Cautious
Alexandros Yfantis | Aug 26, 2016 05:14AM ET
Gold price is testing the $1,310 support and is in a short-term downtrend. Price is expected to continue lower towards $1,280 but first we could see a bounce towards $1,330-35 where a shorting opportunity will arise.
Red lines - bearish channel
Green rectangle - support area
Gold price is trading inside the bearish red channel and is below the Ichimoku cloud in the 4 hour chart. Price could bounce towards $1,330-40 area before continuing its downtrend towards $1,280 which is my minimum pull back target.
The weekly candle is below the weekly tenkan-sen (red line indicator) and if the week closes this bad, we should expect more bearish weeks ahead that could push price even towards $1,200.
Bulls need to be cautious and any bounce should be seen as opportunity to exit longs. Gold price is in a correction phase and has already started a pull back.
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