Gold price remains in a bearish trend. The daily chart is as oversold as when gold was at $1,120. A bounce is justified and for the gold market I expect the low will be today. Gold is most probably in wave 2 down retracing the rise from $1,120 to $1,263.
Blue lines- bearish channel
Purple lines - trend line
Gold price is making lower lows and lower highs. The price is below the Ichimoku cloud and oscillators are oversold. Gold has short-term resistance at $1,202 and the next is at $1,208. $1,215 is the first strong short-term resistance and the most important one is at $1,237-40.
I believe Gold has formed a leading diagonal pattern as wave (I) and is now in wave (II) and has already reached the 50% retracement. A move below the 61.8% Fibonacci retracement will decrease the chances of this scenario being correct. In the long tern I remain bullish.
Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that June be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.