Technical Analysis of Gold for April 6, 2016
Gold bulls tried to push the price higher yesterday but the price still remains inside the bearish channel and the most probable outcome remains a move towards $1,190 before a bigger bounce.
Blue lines - bearish channel
Blue area - support
Yellow area - resistance
Gold got rejected by the 4-hour Kumo (cloud) resistance and is turning lower early today. The price remains below the cloud and inside the downward sloping channel. The trend remains bearish. Support is at $1,215 and resistance at $1,232 for the short-term.
The weekly chart continues to show that there are many chances the entire rise is complete, but unless we break below the upper cloud boundary we cannot be certain. As long as the price is above the Kumo we could still see a new higher high. My longer-term view remains bullish but I would prefer to go long below $1,170.
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