Gold price continues its upward bounce as expected towards $1,130-40 area. A short-term trend is bullish. This is a corrective bounce since the weekly chart remains bearish. However, bears were warned to cover and protect in case the triangle was broken upwards.
Blue line – long-term resistance broken
Green lines – triangle pattern (broken upwards)
Gold price is trading in a bullish trend as price has broken above the Ichimoku cloud and above the long-term downward sloping blue trend line. The triangle breakout above $1,105 was the latest bullish signal. The trend remains bullish as long as price is above $1,100. This is the nearest short-term support. Resistance is at $1,130-40 area.
Blue line -long-term resistance
The weekly chart has turned positive for this week as expected by our previous analysis. Gold price is heading towards the broken blue trend line support and towards the Ichimoku tenkan-sen indicator (red line). Resistance is very strong in that area, so bulls need to be cautious.
The material has been provided by InstaForex Company – www.instaforex.com