Gold price is bouncing as expected towards $1,725. Price has broken above the 4 hour tenkan-sen and kijun-sen indicators and is now challenging cloud resistance. Trend remains bearish as price is still below the cloud.
Support by the tenkan-sen and kijun-sen is at $1,707 and at $1,700. Resistance by the 4 hour Kumo is at $1,729. Breaking above the 4 hour Kumo will be the first step bulls need to make in order to reverse the bearish trend that has started since the recent major top at $1,958. Gold price as we explained in previous posts has reached important Fibonacci and major technical target levels. A bounce was imminent. We should not ignoer also the chances of creating a major low. It is too soon to tell, but bears need to be cautious at current levels. A rejection at $1,725-30 would be good news for bears. This will increase chances of a move lower towards $1,650-30.
