Gold price remains below the 4 hour Kumo (cloud). Short-term trend remains bearish. However price seems to have created a base between $1,780-88 and is bouncing from this level. Price has broken above the tenkan-sen and kijun-sen and is showing signs of strength.
Breaking above the tenkan-sen and kijun-sen indicators is not enough for a short-term trend change. Bulls need to push price above the cloud resistance which is found at $1,810. Support at $1,780-87 is key and breaking below this level will provide a new bearish signal. Breaking below support will push price towards our next downside target around $1,750. As long as price is above $1,780 there is potential for a move towards cloud resistance and a test of the cloud. Bears should not get overconfident.
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