Gold price has broken through $1,330 yesterday confirming our bearish view after the backtest of the broken triangle. I have been warning bulls since the start of the week that things are not bullish for Gold and a decline towards $1,280 is very possible. However, we need to break below $1,310 first.
Blue lines – triangle (broken)
Green rectangle – support area
Red line – long-term support trend line
Price is below the 4-hour Kumo and has broken below the triangle pattern. This bearish signal was given from the start of the week and we are now heading towards the nearest important support of $1,310. A break below it will open the way for a push towards $1,280.
Gold’s weekly candle is bearish and shows signs of a continued bearish trend that will eventually bring price towards the weekly kijun-sen near $1,280-$1,290. I believe that traders should now wait for $1,280-90 in order to try any long trade in Gold. Until then trend remains bearish.The material has been provided by InstaForex Company – www.instaforex.com