Gold price has held the support levels of $1,216 and 61.8% retracement and is bouncing higher. The short-term trend remains bearish as long as the price is below $1,250. This means that a push below $1,200 is still not out of the question.
Black trend line = resistance
The downward sloping trend line is resistance and it coincides with the red Ichimoku cloud that confirms that the short-term trend is bearish. Gold price has broken the short-term resistance at $1,230 and is now testing the $1,240 resistance. Important resistance level for this downtrend is at $1,245-50.
Black line = resistance
The daily chart shows how the price is bouncing off the 61.8% retracement. Resistance is found by the tenkan-sen at $1,247 and next at $1,263 by the kijun-sen. The trend is bearish as long as the price is below the black trend line. The price is above the Ichimoku cloud and this is a bullish signal combined with the bounce off the 61.8% retracement. Support at $1,216 is critical. If it is broken, we will test $1,190.
The material has been provided by InstaForex Company – www.instaforex.com