Gold price has made a double bottom at $1,190 and has bounced towards $1,210 where short-term resistance is found. Initial reaction at the resistance level is not good for bulls as we see a rejection. The first test is not positive for bulls and this will put the support at $1,190-$1,180 in danger.
Black line = resistance
Blue line = support
Gold price has bounced from the blue line support where we saw a double bottom. The bounce has pushed gold price towards the Ichimoku cloud resistance area of $1,210. The Ichimoku cloud is above the current price and this is a bearish sign. Traders would prefer to go short at the current levels as we are close to resistance. Breaking above $1,232 will change the short-term trend to bullish.
The weekly chart remains bearish as price is below the cloud and below both the tenkan-sen and kijun-sen indicators. Resistance is at the kijun-sen at $1,220. Support is at the upward sloping red trend line that comes from the lows of 2014 at $1,130. Breaking this support will be a very bad sign for bulls.
The material has been provided by InstaForex Company – www.instaforex.com