Ichimoku cloud indicator analysis of gold for January 2, 2018

Gold price is in a bullish trend. The upside run above $1,300 was something I did not expect when turning bullish at $1,240. I believed that the bounce would be short lived and price turn lower towards $1,200. I was mistaken. The trend has remained bullish with no reversal sign. Bulls however need to be very cautious.

Gold is trading above both the tenkan- and kijun-sen (red and yellow line indicators). Trend is clearly bullish but also somewhat bullish parabolic. The oscillators are overbought and this is warning sign. Support is at $1,302 and next support at $1,291.

On a weekly basis Gold price bounced as expected at the weekly Kumo. Trend remains bullish and it seems we are heading towards the long-term resistance and previous highs towards $1,350.At $1,277-70 is weekly support. Breaking below it will open the way for a push towards the weekly Kumo at $1,240. Noting however that so far we have no reversal signal. I believe we will see one this week.

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