FX.co ★ Gold price forms a short-term bearish channel

Gold price is trading below $1,500 again and as explained in our previous analysis, Gold has the potential to move towards $1,450-$1,400 area as long as price is below $1,535. Short-

term trend is bearish and the weekly indicators show that there are many chances of an important top.

Green lines - bearish channel

Gold price was unable to break above the $1,535 resistance and made a lower high at $1,520. Price has stopped at the upper channel boundary and is reversing. Bears are looking for a pull back at least towards the lower channel boundary. On the other hand bulls want to see price break above $1,520. As long as price is below $1,520-$1,535 resistance area bears are in control of the trend. A break below $1,460 will be another bearish sign that would imply a move towards $1,400 is very possible.

On a daily basis according to the Ichimoku cloud indicator we have a trend change to neutral as price has entered into the cloud. Price also got rejected at the tenkan- and kijun-sen (red and green lines) indicators and this is another bearish warning. Inability to break above the two indicators is a sign of weakness. Support is at the lower cloud boundary at $1,469 and a break below it will be a bearish sign. The view we have from the Ichimoku cloud indicator is not bullish but bears need some confirmation before they get control of the Daily trend.