Gold prices bounce above short-term support and has most probably started its next upward move towards $1,170 or even higher. Bulls remain in control as long as prices are above $1,125. The short-term trend is bullish.
Gold prices are testing the Ichimoku cloud resistance today in the 4 hour chart as shown above. The bounce from the 61.8% retracement support is a bullish sign but bulls also need to see a break above the cloud resistance. Support is found at $1,125 and resistance is seen at $1,150.
The weekly chart still favors bulls in the short- to medium-term as the price holds above the tenkan-sen indicator ( red line) and a break above the kijun-sen (yellow indicator) could push prices towards the 78.6% Fibonacci retracement or even the cloud resistance.The material has been provided by InstaForex Company – www.instaforex.com