Gold price had broken the short-term resistance and managed to reverse the bearish picture as the price broke above the Ichimoku cloud. The breakdown below $1,180 could be fake. Now, we look very closely if this is a confirmed fake or just a bounce before a larger downward move.
Blue lines = triangle pattern
Gold price has broken the triangle pattern and I expect a back test of the breakout area. However, the bounce was much stronger than I had expected and the price managed to break above the upper triangle boundary and above the Ichimoku cloud in the 4-hour chart. As long as gold price is above $1,195, I expect the short-term trend to remain bullish.
The weekly chart remains bearish despite the upward bounce. Gold price has moved back again above the tenkan-sen and resistance is found where the yellow line (kijun-sen) is found at $1,218-20. At the same level, we found the downward sloping red Ichimoku cloud, which is important resistance. The longer-term trend remains bearish. There is a strong possibility of a test at $1,220. Weekly support is at $1,175 and if it gets broken, things will get very ugly for bulls.