Gold price has held its support on Tuesday and made a big upward spike towards $1,210. This puts the short-term trend back into bulls' hands, but bears, I believe, have not said their final word. Gold price, although, it made a break above the short-term resistance trend line, has pulled back inside the bearish Ichimoku cloud.
Red line = resistance
Gold price as mentioned above, has broken the downward sloping trend line resistance. However price only managed to reach the 61.8% retracement and pull back inside the cloud. This means that short-term trend is neutral. The 61.8% retracement is important resistance; and if bears manage to hold it intact, we could expect a strong downward reversal.
Blue line = support
Gold price on the weekly chart continues to trade between the kijun-sen and the tenkan-sen. It continues to trade in the neutral area between important levels of $1,240 and $1,180. The Ichimoku cloud, however, remains above current weekly chart, and this implies that the longer-term trend is bearish. A close above the tenkan-sen will give gold price a push towards the cloud resistance. On the other hand, a close below the kijun-sen at $1,185 will be a bearish signal.
The material has been provided by InstaForex Company - www.instaforex.com
