Gold - The Market Becomes Bearish

The market continues the downward movement.

The price broke SMA100 and the support zone and made a new swing low which is lower than the previous one. If we use swing highs and swing lows for determining a trend direction, we have a downtrend now. The lower highs and lower lows confirm it.

We can draw a downward price channel and put the price in the exact borders. Breaking below 1280.00 level opens a road to the main uptrend line which can be a reversal zone for the falling market. This uptrend line is also supported by SMA200 and we can expect the price will bounce from this support zone. It will be able to give us new buy signals.

As for the sell signals, it will be better to wait for an upward movement and reaching the downtrend line. The price action in this zone will show us further market movements. If the price bounces from the downtrend line, reversal signals will be good for selling.

RSI gives a bearish signal. MACD supports the downward movement. DMI is bearish and ADX line moves upward. It tells us that sellers become stronger. The market moves to the next support zone at 1260.00 level, the uptrend line and SMA200.