Gold prices made a strong bounce on Friday towards $1,103. Is this the start of a bigger bounce? Yes, it is, if we break above $1,105. For now support is held and prices are moving right under the Ichimoku cloud resistance.
Red line – rejection
Blue lines – price projection
Gold prices remain below the Ichimoku cloud. Prices are testing cloud resistance at $1,104. Breaking above this level will push prices towards $1,130. This is a bounce and back test target area.
Red line – long-term trading support.
Gold prices remain in a bearish trend. However, we can see a bigger bounce is the short-term in case of a break above $1,105. A target fis seen at the level of $1,130. I believe that a back test of the break-down area is very probable and the best chance to re-sell gold, which has $1,000-$980 as target areas.
The material has been provided by InstaForex Company – www.instaforex.com