Gold price is moving towards the short-term highs and resistance at $1,090. A rejection here will push the price most probably to a new lower low at $1,045, if however bulls manage to break above resistance, our first short-term target is seen at $1,120-30.
Gold price is below the daily Ichimoku cloud and stochastic is at oversold levels and turning upwards. The rice is also below the tenkan-sen (red line). Now is the time for gold prices to make a strong bounce towards the cloud and trend-line resistance near the area of $1,120-30. First we must see a daily close above $1,082 followed by the bullish move.
Yellow line - long-term resistance
Red lines - bullish wedge
Blue lines - projections
In the weekly chart we see gold prices below the Ichimoku cloud and still inside the bullish wedge. I believe we should expect 2015 or early 2016 to mark the end of the bear market and trend reversal. The weekly stochastic shows that at least a bounce towards the Ichimoku cloud should be expected as it happened before when the stochastic was oversold.
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