Today was yet another bearish day for gold, as the metal dropped to form fresh new lows for the Daily and Investor Cycle. Because of this development today, and the lack of a bounce recently, I doubt that last week’s low could have been a Daily Cycle Low.  Gold continues in a short term downtrend in the daily time frame The RSI continues to track lower indicating downward momentum but is approaching the oversold zone. Last night’s low held potential support of the March low at 1143. However, daily candles would need to show signs of a trend change by moving past yesterday’s high at $1149.60 to indicate that this support is being rejected. Below here there is potential support from an AB=CD pattern around 1135.6. The last major low on the daily chart provides potential resistance around $1151. In the big picture, a decline to potential wedge support around $1090 looks possible over the medium term.

By Theodoros  Batsoulis
Technical Analyst
Risk Market
www.riskmarket.co.uk