Gold price has bounced off support at $1,180 but the bounce is not as strong as bulls would like. The price remains inside the Ichimoku cloud implying the short-term trend has changed from bearish to neutral but not to bullish. Gold price remains in a longer-term bearish trend.
Red line = support broken
When the red trend line was broken, we received the last signal. We expected gold price to move towards the cloud support between $1,180-75. The price is inside the cloud. A low of $1,178 is short-term support and the 61.8% retracement to $1,172 is also seen as support. Bulls can feel comfortable as long as we trade above $1,170. However, they will also need to show signs of strength
Blue line = support
The weekly chart remains bearish. Support is found at $1,130. Resistance is seen at $1,200. The bearish cross of the kijun-sen and tenkan-sen is not a good sign as I pointed out yesterday. A break above resistance at $1,200 is going to push gold price towards $1,250 to test the cloud resistance. Longer-term view remains bearish. Breaking $1,130 will give us target at $1,000 or even $900.
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