Ichimoku indicator analysis of gold for December 22, 2017

Gold price remains near the important $1,266-70 resistance area. Trend remains bullish but price has made no real progress over last few days. Gold price is expected to reverse and at least test support at $1,250. I'm bearish, expecting a move even towards $1,220.

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Black lines - bearish wedge

Gold price is not moving higher in an impulsive pattern. Price although trading above the 4-hour Kumo (cloud) has formed a bearish wedge. Support is at $1,263 and at $1,260. Breaking below these levels will give me a new sell signal with $1,250 as minimum target. Price is right below the 61.8% Fibonacci retracement of the latest downward move and I'm bearish here.

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In the daily chart, Gold price is testing the daily kijun-sen. This is very important resistance. A rejection at current levels will at least push price towards the daily tenkan-sen (red line indicator). However I believe it is more probable we break it and move to test recent lows at $1,240-37. Forming a higher low would be a bullish sign. That is why bears need to break below the tenkan-sen and weaken bulls further.The material has been provided by InstaForex Company - www.instaforex.com