Technical analysis on Gold for May 7, 2018

Gold price has broken out of the bearish channel, but remains below the Ichimoku cloud resistance in the 4 hour chart. Trend remains bearish as long as the price is below $1,320. On a break above $1,320, we will have short-term higher highs and higher lows. Combined with the bullish divergence in the RSI, we remain short-term bullish.

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Blue lines - bearish channel

Upward sloping blue line -bullish divergence

Gold price has short-term support at $1,301. Resistance is at $1,320 and next at $1,330. I expect Gold to start a new upward move from around the $1,300-$1,310 area as we have been saying for the last few weeks. So now we are bullish.

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