15.12.201410:50 Forex Analysis & Reviews: Gold technical analysis for December 15, 2014

Long-term review

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Gold price has broken once again below $1,215 and is unable to break above $1,233 resistance. The short-term price action implies that we should expect a downward move towards $1,205-$1,200. Important daily support at $1,180, if broken, will be a bearish sign implying that we could have started a medium-term move to new lows.

Blue line = resistance

Red line = support

Gold price is now trading below support and is making new lows. After reversing at the important resistance level of $1,240, gold price has not managed to recover. As long as price is below the blue trend line resistance, short-term trend will remain bearish. Short-term support is found at $1,205-$1,200. Breaking below that area will put $1,180 to the test.

On the 4-hour chart shown above gold price has broken below the Kijun-sen and if this 4-hour candle closes below $1,217 then we should expect this downward move to extend towards the Ichimoku cloud at $1,200. Cloud support is also at $1,185-80. If it is broken then we should expect the $1,140 low to be tested.

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