Gold price has reached my target of $1,200 and marginally broke below that level but has found support, as expected, and is now turning higher. The medium-term trend remains bearish, but there is a good chance gold price makes a considerable upward move from the current levels.
Blue line = support
Black line = resistance
Gold price is trying to bounce towards the Ichimoku cloud resistance. The price is above the kijun-sen and the tenkan-sen. This means that there is a short-term bullish momentum that could push the price towards the cloud resistance. The trend is bearish since the price is below the cloud.
As shown on the daily chart above, gold price has found support right at the top of the Ichimoku cloud support. This support level is very important. If we break below this support level, we should expect gold price to move towards $1,150. Resistance is at $1,225 where the tenkan-sen(red line) is found. If we close above $1,225, we should expect a move higher towards $1,255 where the kijun-sen (yellow line) is found.
The material has been provided by InstaForex Company - www.instaforex.com
