Ichimoku indicator analysis of gold for October 13, 2017

Gold price made a shallow pull back yesterday towards $1,289 and is now making fresh new highs. Gold price is breaking above the 38% Fibonacci retracement and this is a bullish continuation sign.

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The short-term RSI is overbought and diverging. This is just a small warning that we could see another short-term pull back towards $1,290 before higher, but necessary. Gold is in a bullish short-term trend after breaking above the 4-hour Kumo (cloud). Support is at $1,288 and next at $1,283.

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The weekly reversal off the kijun-sen (yellow line indicator) is progressing as expected and according to bulls plan. Trend remains bullish and with short-term trend changing to bullish again, we expect Gold price to move at least towards $1,320. The big test will come then.The material has been provided by InstaForex Company - www.instaforex.com