02.05.201411:47 Forex Analysis & Reviews: Gold technical analysis for May 2, 2014

Long-term review

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Gold price remains weak. It continues to slide lower towards important daily support of $1,275 and towards intraday support of $1,268. Gold price remains below the red downward sloping trend line resistance and below the Ichimoku cloud.

The trend remains downward. If Gold price does not break above $1,300, we should expect the price to break recent lows and move towards $1,250 or even $1,200. So we prefer short positions with $1,300 stop reverse. If resistance at $1,300 is broken, we should expect the recent highs at $1,331 to be challenged.

The daily chart above shows that price is holding above support for now, but it is getting really close to breaking below it and opening the road towards $1,200. If support holds, we should expect a bounce towards $1,310 at least.

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