Gold price is trading around $1,787 having broken above the 4 hour Ichimoku cloud. This break out is what bulls wanted to see and what we noted in our previous analysis. This was the bullish signal we have been waiting.
The last few days we talked about the potential for a reversal in Gold price. We showed the technical reasons that justified such a reversal and we said we remain optimistic as long as price is above $1,720. Gold price today broke above the 4hour cloud resistance. This is the first step for such a reversal. The tenkan-sen (red line indicator) is very close to crossing above the kijun-sen (yellow line indicator). Crossing above it will be an added bullish signal. It would be ideal if that crossing happened above the cloud, but bulls will have to take it as it is. First upside target and short-term resistance is at $1,800. I expect price to surpass this level. Support is at $1,779 and next at $1,772. Bulls need to defend these levels.
