Gold price continues moving lower as expected by our latest analysis towards support of $1,140-20. A trend is bearish in the short-term and I would remain neutral as stochastics have not reached oversold levels yet in the daily chart.
Green rectangle – impulsive move area
Blue rectangle – corrective move area
Blue line – price projection
The 4-hour chart above shows that price remains inside the corrective area and we could see a move lower towards the 61.8% Fibonacci retracement before the resumption of the uptrend. The stochastic has just entered oversold levels and until we see some divergence I would remain neutral. Gold price has reached an area where we should avoid selling and opening short positions.
The weekly chart shows how the weekly candle is testing the tenkan-sen support and the stochastic is about to cross. It is important to see where prices close today. I prefer to stay neutral.The material has been provided by InstaForex Company – www.instaforex.com