Gold technical analysis for January 19, 2016

Gold price managed to close above weekly support last week, and there are signs that it can move towards $1,120. Gold is headed towards higher highs and higher lows confirming the bullish trend.

Red lines - bullish channel

Green rectangle - target area

Gold price is trying to break above the short-term Ichimoku cloud resistance at $1,098. As long as the price holds above the lower red line of the bullish channel, bulls are in control of the trend with the most probable target at $1,120.

On a weekly basis, the price is trapped between the kijun- and tenkan-sen indicators. Support was held last week and gold seems now to be going to test the kijun-sen once again. I expect the yellow metal to move higher towards $1,120 this week.The material has been provided by InstaForex Company - www.instaforex.com