Gold technical analysis for January 14, 2016

Gold price reached important support of $1,080 and broke out above the downward sloping wedge. It is important for the bullish trend to hold yesterday's lows and break above $1,095 in order to move towards $1,110-20.

Blue lines - downward sloping wedge

Gold price bounced off the Ichimoku cloud. The price stopped at kijun-sen 4-hour resistance at $1,095. So bulls will need to break resistance at $1,095 in order to regain control. Support is found at $1,080.

Gold price has bounced off the tenkan-sen support and this is a good sign for bulls. However, bulls will need to break above the weekly kijun-sen (yellow indicator) resistance to move gold prices higher. There is also a very strong probability that gold will move towards the Ichimoku cloud as the stochastic oscillator is turning upwards from oversold levels.The material has been provided by InstaForex Company - www.instaforex.com