Gold price has broken above the short-term Ichimoku cloud resistance. Price has now provided a bullish signal and after the break out we could expect a back test to be performed before the up trend continues.
Gold price is trading above the Ichimoku cloud. This is a bullish sign. Usually after such break outs we see price pull back and test the upper cloud boundary. At the upper cloud boundary we also find the kijun-sen (yellow line indicator) at $1,811. A pull back towards that level as a back test is justified but not necessary. Bulls do not want to see price break below $1,811 and stay below this level. Bulls want to see price make another higher low and then break above $1,834 for a move towards $1,880-90. We remain bullish as long as price is above $1,790.
