Source: Forex Analysis
Gold price has broken below $1,276 and is trading just above $1,270. Gold price has broken below important support trend line. Gold price is at the edge of a cliff that could lead price much lower towards $1,250-25 area.
Blue neckline – horizontal support (broken)
Green line – support trend line (broken)
Black line – resistance
Blue downward sloping line – major resistance trend line
Gold price is breaking below the green trend line support that has lasted for several tests so far. Next support is at $1,266 and if broken I expect Gold to continue lower at least towards $1,250 if not $1,225 area. Resistance is at $1,276-80 and next at $1,302. As long as Gold remains below $1,300 we remain bearish as we have been saying for the last few weeks.
The material has been provided by InstaForex Company – www.instaforex.com