Gold price has broken below the lower triangle boundary we mentioned last week and is showing weakness signs. This means that we should expect Gold price to move below $1,300 and close to $1,290-80 area. Only if Gold price retakes $1,351 on Monday I cannot see a false breakdown here and I will be short-term bearish waiting for $1,280.
Gold price is expected to see some accelerated selling this week. If not then we will have to draw the triangle pattern again. However the chances favor the bearish view for now and only a break above $1,351 will bring the bullish scenario back in play.
On a weekly basis Gold is fighting with the tenkan-sen indicator and is vulnerable to moving towards the weekly kijun-sen support at $1,290. Gold is vulnerable and I’m short-term bearish.
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.