Gold Technical Analysis for March 29, 2016
Gold is trading inside a downward sloping channel. However, there are increased chances of a bigger bounce this week towards $1,240. Downside is limited to $1,200-$1,190 if we break below $1,208.
Blue lines - a downward sloping channel
Gold is trending lower but as it has reached the lower channel boundary I believe it is time for a relief bounce towards at least the $1,234-40 area. The price is below the Kumo (cloud) and as long as we are below it we should expect the larger pullback to end around $1,150-$1,100.
On the weekly chart, the price continues to trade above the weekly Kumo (cloud) and above the 38% Fibonacci retracement. The entire upward move from $1,045 is most probably over and we are now in a corrective phase that will bring the price towards $1,150-$1,100 before resuming the upward march towards $1,500.
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