Gold price broke above the short-term resistance line and moved towards the 38% Fibonacci retracement and Ichimoku cloud resistance as we expected. Yesterday, we forecasted a strong probability of a bounce towards the first important resistance of $1,120-25.
Black line – broken resistance trend line
Gold price is inside the Ichimoku cloud resistance and just below the 38% Fibonacci retracement. Gold price bounced towards $1,120 as we had expected. I believe traders should still be patient and wait for an opportunity to trade. Resistance is seen at $1,125 and support is found at $1,100.
Gold price bounced as expected towards the weekly tenkan-sen resistance indicator at $1,120. Tonight, volatility is expected to rise. I would prefer to stay neutral and see what happen before entering the market. Gold has increased chances of a bigger bounce towards $1,200 as long as we close above $1,100.
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