Gold price tried to break above $1,100 yesterday, but sellers did not let it break above the short-term resistnace at $1,103. The price pulled back towards support of $1,090, and we saw some signs that a bigger bounce could unfold today or tomorrow towards $1,115-20.
Blue line – trend line resistance
Green lines – equal size rise projection
Gold price continues to trade below the blue trendline resistance and below the Ichimoku cloud. The price is making a small reversal pattern at $1,080. I believe that if we break above $1,103, we could see a bigger bounce towards $1,120.
Blue line – long-term support trend line
The weekly chart remains bearish. The price is below the tenkan- and kijun-sen indicators and below the Ichimoku cloud.There are some signs of bulls’ attampts to push the price higher, but I believe that $1,120 will be a very strong resistance and the price will not be able to break above it. An overall trend remains bearish as long as the price is below $1,150 and the target remains near $1,040-$980.
The material has been provided by InstaForex Company – www.instaforex.com