Gold price is trading at $1,786. Price has entered the 4 hour Ichimoku cloud and this has turned short-term trend to neutral. As we explained in previous posts, we remain bullish Gold as long as price is above $1,720 as there are technical reasons pointing to increased chances of a reversal. Today we use the Ichimoku cloud in order to confirm the key resistance levels bulls must break in order to regain control of the short-term trend.
Gold price is trading above the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). Both provide support at $1,781. The tenkan-sen is also very close to crossing the kijun-sen to the upside. This would be a bullish sign. The lower cloud boundary is at $1,779 and a 4 hour close below it will turn trend back to bearish. Price briefly broke out of the cloud today but bulls are not showing enough strength to keep price above it. The resistance at the upper cloud boundary is at $1,788. Bulls need to recapture this level and stay above it.
