Gold price continues to move sideways above the important short-term support of $1,250 and below the resistance at $1,280. Trend is neutral and traders should be patient in order to wait for a clear signal before they trade.
Black line = resistance
Green line = resistance
Gold price is below the Ichimoku cloud. This is a bearish sign. However, it is also held above the short-term support at $1,250. If this support is broken, expect gold price to fall towards $1,220 at least. Resistance is at $1,280 right now by the Ichimoku cloud and the black trend line, if it is broken, that will imply that we are starting a new upward move with $1,330 as target.
On the daily chart gold price is trading below the tenkan-sen and above the 38% retracement. Breaking below the 38% retracement will confirm we are heading towards at least the kijun-sen (yellow line) at $1,235 where the 50% retracement is found. The most probable target, if the 38% support fails, is the 61.8% retracement.
The material has been provided by InstaForex Company – www.instaforex.com