20.07.201609:08 Forex Analysis & Reviews: Technical analysis of Gold for July 20, 2016

Long-term review

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Gold price is breaking short-term support and triangle pattern to the downside. This implies that $1,300 will be tested. This is most probably that the final downward extension of the decline started at $1,375.

Red lines - triangle pattern

Blue lines - bullish channel

Gold price is trading below the 4 hour Kumo (cloud) and is breaking below the triangle pattern. This will imply a push towards $1,300 to finish the entire decline from $1,375. Resistance is at $1,340 and a move above will confirm a change of the trend to bullish.

Red lines - bullish channel

Gold price is testing the lower channel boundary. Support is at $1,324-25 and next, at $1,310. The price is above daily Kumo (cloud) but a pullback towards the cloud is not out of the question for next few weeks. Daily resistance is at $1,347. A break above will open the way for a re-test of the recent highs. I remain longer-term bullish and a pullback towards $1,250-$1,170 will be a gift for bulls.

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