Ichimoku cloud indicator analysis of gold for December 20, 2017

Gold price is still near its highs around $1,265-66. The resistance area above current levels is very important and I continue to expect prices to move lower towards $1,220-$1,230. First weakness sign will be the break below $1,260. Yesterday we saw some signs of weakness but no confirmed reversal yet.

Blue lines - bearish wedge

Gold price is giving bearish divergence signs by the RSI while trading above the Ichimoku cloud in the 4 hour chart. Support is at $1,260. I'm bearish at current levels expecting a sharp decline towards $1,240 at least. Resistance is at $1,268.

On a daily basis Gold price is testing the resistance by the kijun-sen (yellow line indicator). Price is below the daily Kumo (cloud). This is bearish. If price gets rejected at current levels as we expect, then we should see a move lower towards at least the tenkan-sen (red line indicator) at $1,250. A daily close below $1,250 will open the way for a move towards $1,220.The material has been provided by InstaForex Company - www.instaforex.com