Ichimoku indicator analysis of gold for October 3, 2017

The gold price remains in a bearish trend. This pullback has the purpose to throw out weak bulls. This pullback is corrective. Technically we should soon see a reversal to the upside. The signal will be given on a break above $1,277.

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Black line - resistance

Blue lines - bullish divergence signs

With the RSI weakening and not making new lows as price does, the time for a strong bounce and resumption of the uptrend is getting closer. Support is at $1,267 and next at $1,250. Resistance is at $1,277 and next at $1,298.

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Magenta line - resistance

Blue line - support

The gold price could be heading towards the Kumo (cloud) support at $1,250 after breaking below the kijun-sen (yellow line indicator). We continue to consider this pull back as a buying opportunity but we still have not seen a reversal signal. My longer-term view remains bullish.

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