Ichimoku indicator analysis of gold for October 10, 2017

Gold price has broken above the short-term resistance trend lines and is testing important cloud resistance at $1,290. Breaking above the 4-hour cloud will be an important short-term reversal confirmation. I continue to believe that the next leg up towards $1,400 has started.

Black line -resistance

Red line - resistance

Gold price is trading above both the tenkan- and kijun-sen indicators and tries to break above the 4-hour Kumo (cloud) resistance. Support is at $1,280. Breaking above the Kumo will be a bullish sign.

On a weekly basis, Gold price has reacted positively right at the support by the 61.8% Fibonacci retracement. Last week's bullish hammer candlestick pattern is promising for the weeks to come. Last week's low is important support and bulls do not want it broken.The material has been provided by InstaForex Company - www.instaforex.com