Gold price remains inside the upward sloping channel and is making higher highs and higher lows in the short term. The short-term trend is bullish as the price has broken both the trendline resistance from $1,260 and the Ichimoku cloud. We could see a bounce in Gold price towards $1,210-20 before the next downward move.
Red lines = upward sloping channel
Green line = support
Black line = trend line resistance (broken)
Gold price has short-term support at $1,184 and at $1,179. If it is broken, we could see a pullback towards $1,160. Resistance is found at $1,200-$1,210. Backtesting towards the Ichimoku cloud is very possible if we break below $1,179. The short-term trend is bullish.
Blue line = critical long-term support at $1,130
Gold price on the weekly chart, as shown above, is trying to reach the kijun-sen and tenkan-sen indicators that are close to another bearish crossing. The longer-term trend remains bearish. Gold price has bounced and possible target of this bounce remains at the kijun-sen at $1,215. I believe Gold price will probably move towards that area before the next downward move.
The material has been provided by InstaForex Company - www.instaforex.com
