Gold price has broken the neckline and has given a short-term sell signal. The target for the Head and Shoulders pattern I mentioned yesterday is the recent lows at $1,140-30. I’m bearish for Gold. Gold is at a short-term downtrend and in danger of starting a new downward move that could bring the price near $1,050.
Green line = support
Red line = resistance
Blue horizontal line = Head and shoulders neckline
Gold price broke below the neckline today. This implies that the Head and Shoulder target should be reached shortly. This target is at $1,130. Gold is below the short-term Ichimoku cloud. In the context that the upward sloping green line is broken, we should expect more selling pressures for Gold price.
The weekly chart has started the week with a bearish note. Breaking below the kijun-sen support is not a good sign. Closing this week below it, considering the fact that we remain below the weekly Ichimoku cloud, it implies that we should expect new lows.
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