Gold price reached a new lower low yesterday after breaking the short-term support at $1,060-65. Besides, it has reached our lower end of the target area touching $1,046. I continue to expect a big bounce towards $1,120-30 and I continue to believe this is not the time to be short or sell gold. This is the time to be looking for an opportunity to open long positions.
Gold price remains below the Ichimoku cloud confirming short-term trend remains bearish. However, despite the price reaching lower lows, the 4-hour stochastic is not following this scenario. There is a bullish divergence. This is not the time to be looking for short positions.
Blue lines - projection
Gold price is at the lower wedge boundary. Weekly stochastic is oversold. We could slide lower towards $1,020-30, but in overall this is the time to be looking for an opportunity to open long positions as I expect gold price to make a strong bounce towards at least $1,120-30.