Ichimoku indicator analysis of gold for October 24, 2017

The Gold price has broken out of the downward sloping wedge pattern but has stopped right at the short-term cloud resistance at $1,282. Price needs to break above $1,282 and especially $1,290 for any upward move to consider the start of the next upward move to $1,400.

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Blue line - resistance (broken)

Red lines - bullish divergence signs

Gold price is trading below the Ichimoku cloud in the 4-hour chart. Price bounced off the 61.8% Fibonacci support area but the important short-term resistance at $1,282 is not clearly broken, Next important resistance for bulls is at $1,290. As long as the price is below that level, we remain in a short-term bearish trend.

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Magenta line - resistance

Blue line - support

On a weekly basis, Gold prices try to move back above the kijun-sen (yellow line indicator). This would be a bullish sign. However, as long as we are trading below the tenkan-sen (red line indicator) there will always be a danger of moving lower towards the weekly Kumo (cloud) and the blue trend line support.

The material has been provided by InstaForex Company - www.instaforex.com