Gold price opened with a gap up early on Monday following the disappointing Non-Farm Payrolls number released on Friday. As we mentioned on Friday, there was still no sell signal as the price remained above the Ichimoku cloud. But even with this gap up, the price has not broken above the recent highs and critical resistance at $1,222. This week is going to be important as we see a move back towards $1.250-60 or $1,180.
Blue line = resistance
Red line = support
Gold price is above the Ichimoku cloud. It is trading just below the recent high of $1,222. If support at $1,180 gets broken, we should expect $1,130 to be tested. If gold price closes above $1,222 on a daily basis, we should expect a move towards $1,250 at least.
In the weekly chart, gold price has moved above the red tenkan-sen indicator but is still below the yellow kijun-sen. If it closes above the kijun-sen this week, we should expect gold price to move towards the cloud in the area of $1,250 at least. A rejection at the current levels is likely to be a bearish signal and I will be expecting to see Gold price moving towards $1,000 over the coming weeks if support at $1,180 fails to hold.
The material has been provided by InstaForex Company - www.instaforex.com
