31.10.201411:15 Forex Analysis & Reviews: Gold Technical analysis for October 31, 2014

Gold price as expected has broken $1,200 and the huge support has set at $1,180. The bearish trend remains strong both in the short- and long-term. Our longer-term target remains at $1,050 as I have been saying for so long. The trend is down and now that we have broken below the triple bottom, the selling pressures should push Gold price much lower.

Red line = support broken

Gold price remains below the Ichimoku cloud and has extended the decline after my sell signal at $1,220. Now below the triple bottom at $1,180, the road is open for a steeper decline towards $1,100 first and lower in the future. Trend is clearly down and any bounce should be sold. Resistance is found at $1,200 and $1,220.

Blue line =resistance

Black line= support

In the weekly chart as shown above we finally see the triple bottom being broken. The weekly resistance level at $1,237 was tested and price got rejected as bulls could not close a week above it. This was a clear bearish sign and that is why I said in my analysis that the upward bounce from $1,180 to $1,255 was over. The trend is down and heavy selling is expected to follow in this market to new lows. Breaking such a bearish formation has many chances of succes for short positions.