FX.co ★ Gold Technical analysis for October 30, 2014

Gold price has broken short-term support at $1,221 and price is moving towards our short-term target of $1,200 already. My longer-term view remains bearish targeting $1,050. Important resistance for a trend change is the $1,240.

Red line=broken support

Gold price has made a lower low and remains below the Ichimoku cloud. Next support is at $1,200 and at $1,180. This support area is strong and could produce a bigger bounce towards $1,265 but I would again prefer not to take any bullish trades and only look for levels to sell Gold. The short-term resistance is at $1,225 and at $1,240. Breaking above $1,240 will give me $1,265 as the 1st target. The trend however remains bearish and I continue to prefer short positions.

The weekly chart remains fully bearish as price has now moved away of the critical resistance at $1,237 that was needed to be broken on a weekly basis in order for Gold price to bounce higher towards $!,265 or even $1,300. The bearish weekly formation combined with the rejection at the Ichimoku cloud, continues to support my longer-term bearish view that eventually we will break $1,180.