Gold is testing important Fibonacci and trend line support levels at $1,290-93. Our expectations remain bullish as long as we trade above that support level targeting $1,350 at least. The form of the decline from $1,322 is corrective and consists of 3 waves. The previous upward move consists of 5 waves and that is why I believe it is more probable to see another move higher.
As shown in the 4 hour chart above, price is above the critical red trend line support but below the Ichimoku cloud resistance at $1,313. A break above $1,313 will confirm our bullish view and that we are heading towards $1,350. Stop for long positions should be the $1,280 lows where the start of the impulsive wave is found.
The daily chart shows that price is testing the lower end of the Ichimoku cloud. This is an important support for bulls. Next important support is the long-term red trend line that comes from $1,180 and touches $1,240. The support price level of this trend line is at $1,270.
