Gold price continues to trade in a bullish trend. Price continues making higher highs and higher lows. As we explained in our last analysis Gold price might be making a blow off top as the RSI did not confirm the new higher high in price. Today we use the Ichimoku cloud indicator in order to identify as soon as possible any reversal signal.
Gold price is clearly above the cloud and above both the tenkan-sen (Red line) and the kijun-sen (yellow line) indicators. Support by the tenkan-sen is at $1,848 and by the kijun-sen at $1,811. As long as Gold price is above the tenkan-sen ($1,848) we remain short-term bullish. Breaking below it will be the first sign of weakness. Usually when price breaks below the tenkan-sen it continues lower towards the kijun-sen. If the kijun-sen is broken we see price test the Kumo (cloud). Price so far has provided no reversal sign so there is no confirmation of a top yet.
