Technical analysis of gold for January 9, 2017

Gold price continues to trade strongly above $1,170 and near $1,180 despite the Dollar strength we saw on Friday. I would expect a deeper pullback in Gold prices towards $1,140-50 area to retrace the first leg up from $1,122.

Gold is trading above the 4-hour Ichimoku cloud. Support is at $1,165 and next at $1,150. As long as price is above the 4-hour Ichimoku cloud we will continue to expect to see Gold move towards $1,200-$1,220 at least. Short-term resistance is found at $1,182.

Red lines - wedge

The wedge is broken and has given us a bullish signal two weeks ago. The target remains at the lower cloud boundary at $1,220. Gold price has stopped last week's rise right at the tenkan-sen (red line indicator). This could be a long-term low and important long-term reversal, but Gold bulls need to break above $1,200-$1,220 to confirm the bottom.

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