Gold price remains in a short-term bullish trend despite the longer-term bearish trend. Price is a making an upward bounce that could eventually push the metal towards $1,140-50 level. The $1,111 level is a key for the short-term trend while the $1,090 is critical support for the bullish trend.
Blue line – trend line support
Blue area – resistance
Gold price is above the Ichimoku cloud. Price is making higher highs and higher lows after the breakout above the Ichimoku cloud. Support area is at $1,100. If $1,111 low is broken, we should see a pullback towards the cloud support. If resistance at $1,127 is broken, we should see a move higher towards $1,140.
Blue area- resistance
The weekly chart remains bearish in the longer term, but the signs from last week for a possible bounce are now materializing. Bounce target remains at the $1,140-50 area where the tenkan- and kijun-sen indicators are found. Price is well below the Ichimoku cloud confirming a long-term bearish trend.
The material has been provided by InstaForex Company – www.instaforex.com