Gold price has made a sharp decline yesterday below $1,300. We warned bulls that by breaking below $1,310 and the fact that the short-term support trend line were broken, have given us enough bearish signals to expect a move lower towards $1,290-$1,300. Major support is now being tested.
Blue rectangle - resistance area
Green rectangle- major support area
Blue line - short-term support trend line (broken)
Red line - major support trend line
Gold price is now challenging the important support area below $1,290 as low as $1,280. Bulls need to react fast and push price above $1,300 again. Inability from bulls to recapture the $1,300 level will most probably lead to a break of $1,280 and a push lower towards $1,260-50 area. Gold short-term trend remains bearish after breaking below the blue trend line and $1,310. Breaking below $1,280 will put the medium-term bullish trend in danger of changing to bearish.
The material has been provided by InstaForex Company - www.instaforex.com
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