Gold price has made a pull back towards $1,805 and is now bouncing higher. Our expectation from previous analysis was for Gold price to reach $1,810 where the upper cloud boundary is found and then bounce.
Gold price has pulled back towards the cloud support. This usually happens after a cloud break out. Bulls want this back test and want to see price bounce off the cloud. So far price is bouncing off the cloud and should continue higher. Bulls do not want to see price re-enter the cloud and most importantly they do not want to see price break below the cloud. Resistance is found at $1,817 where the tenkan-sen (red line indicator) is located. Breaking above the tenkan-sen would be the sign of strength bulls are looking for in order for the up trend to continue.
