Gold price downside potential is limited as we explained in our previous posts. Gold price should soon start a strong bounce at least towards $1,320. Short-term trend remains bearish but there are signs of a reversal.
Red lines — bearish channel
Blue lines — bullish divegence
Short-term resistance is at $1,295. Support is at $1,280-77. Price got rejected at cloud resistance and pulled back for a back test of the broken channel. The divergence in both RSI indicators is a bullish sign and we should soon see a strong bounce above $1,300.
On a weekly basis Gold price is holding above the kijun-sen indicator (yellow line). Gold price could bounce from current levels at least towards the tenkan-sen (Red line indicator). A close above it will be a very bullish sign specially if it happens today. Not many chances of this happening but if it does, it will be a very good sign.