Gold price although it has broken above the bearish short-term channel, the follow through was not as strong as expected. Price remains below important resistance and no reversal is confirmed yet.
Black lines – bearish channel
Gold price is trading below the Ichimoku cloud resistance. Resistance is at $1,180-$1,200. A break above this area will confirm a trend change. This trend change is anticipated for some time now as we are close to important long-term support levels.
Red lines – bullish wedge
On the daily chart, we can see oscillators diverging at oversold levels and a wedge pattern that implies a strong upward move will follow once we break above $1,180. Target of this bounce should be beginning of the wedge pattern around $1,270-$1,300. Support is at $1,150 and next at $1,120.
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Gold price although it has broken above the bearish short-term channel, the follow through was not as strong as expected. Price remains below important resistance and no reversal is confirmed yet.
Black lines – bearish channel
Gold price is trading below the Ichimoku cloud resistance. Resistance is at $1,180-$1,200. A break above this area will confirm a trend change. This trend change is anticipated for some time now as we are close to important long-term support levels.
Red lines – bullish wedge
On the daily chart, we can see oscillators diverging at oversold levels and a wedge pattern that implies a strong upward move will follow once we break above $1,180. Target of this bounce should be beginning of the wedge pattern around $1,270-$1,300. Support is at $1,150 and next at $1,120.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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