Technical analysis of Gold for October 18, 2018
Gold price as explained in yesterday’s analysis has most probable made a short-term top. Prices today are lower reaching even below $1,220. This pull back is considered to be a buying opportunity for a move towards $1,250-60. However I see this pull back bottoming in lower levels and not here.
Green lines – bearish long-term channel
Black rectangle – support
Gold price is pulling back lower towards the black support area. This area is now support. It was previously resistance and a back test and bounce would be a great sign for bulls. Bulls do not want to see prices penetrate below this support area and stay below it.