Ichimoku indicator analysis of gold for November 7, 2017

Gold price has broken above the 4-hour Kumo (cloud). This is an initial bullish sign but we will need to see confirmation of this strength by breaking previous highs.

Red line - price support

Black line - RSI support

As we mentioned yesterday, the RSI was on top of support and we expected price to bounce as long as the support was not breaking. And this is exactly what happened. Support is at $1,266 and resistance at $1,290. Price has moved above the cloud but needs to stay there and start making higher highs and higher lows.

On a daily basis, Gold price has closed above the tenkan-sen (red line indicator) but below the kijun-sen (yellow line indicator) where it got rejected once again. A daily close above the kijun-sen will be a bullish sign and will push Gold price towards the Kumo at $1,295-$1,300. I remain longer-term bullish.The material has been provided by InstaForex Company - www.instaforex.com