Following up from my last analysis, gold has found support on the intermediate uptrend line in combination with the 200DMA. I thought it would have broken it on the first try but it makes sense that it had some kind of bounce from this level. This does not change the bearish outlook.
Cumulative buying is very low so far on this bounce, an indication of weakness as there is not much buying pressure (demand) on this rally. I am still expecting a break of the 2 uptrend lines to signal the intermediate decline. I have changed my projection as seen by the purple line. This bounce is nothing more than a dead cat and we should still be heading lower in the short term. The target for this drop is still in the 1230's region. After that we could get another bounce before heading to 1200 or lower.
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