Ichimoku cloud indicator analysis of gold for February 6, 2018

Gold price remains inside a trading range of $1,330-$1,347. Trend is bearish as price remains below the 4-hour Kumo. Early today, price is testing cloud resistance. Bulls need to be careful as long as price is below the Kumo.


Black rectangle - resistance

Gold price shows rejection signs at the 4-hour Kumo. Resistance at $1,347 is important. Support is at $1,339-6. However the most important support level for the short term is at $1,330. A break below it will push it towards $1,310. If price breaks above resistance, then we should expect price to move towards $1,380-90.


Magenta line - long-term resistance

On a daily basis Gold remains above the kijun-sen and below the tenkan-sen. Price is still below the long-term resistance trend line. A rejection here will push price towards cloud support near $1,300-$1,290 at least. As long as price does not break above $1,350, we are in danger of a sharp move lower.

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