Gold price although it has broken above the bearish short-term channel, the follow through was not as strong as expected. Price remains below important resistance and no reversal is confirmed yet.
Gold price is trading below the Ichimoku cloud resistance. Resistance is at $1,180-$1,200. A break above this area will confirm a trend change. This trend change is anticipated for some time now as we are close to important long-term support levels.
Red lines - bullish wedge
On the daily chart, we can see oscillators diverging at oversold levels and a wedge pattern that implies a strong upward move will follow once we break above $1,180. Target of this bounce should be beginning of the wedge pattern around $1,270-$1,300. Support is at $1,150 and next at $1,120.
The material has been provided by InstaForex Company - www.instaforex.com