Gold price has held the important support at $1,145 on Friday. Despite the short-term weakness signals, prices reversed strongly and broke above the previous high at $1,178. Price has now reached the 2nd resistance at $1,190-$1,200. My longer-term view remains bearish as long as we are below $1,255 targeting at $1,050.
Black line = support
Gold price has broken above the Ichimoku cloud but has reached the resistance of the 50% retracement. As long as price is above the black support line, bulls should feel safe. However, a bearish reversal from the current levels is very possible as I still believe that the longer-term trend remains bearish with a view towards $1,050. Support is found at $1,155 and at $1,145. Breaking below thsese two levels will increase the chances of seeing a new low below $1,130 towards $1,050.
In the daily chart, the trend remains bearish as price remains below the Ichimoku cloud and has not managed to close above $1,193 which is the kijun-sen resistance. Support at $1,155 where the tenkan-sen is found is very important. The upward bounce from $1,130 is a corrective bounce relative to the $1,255-$1,130 decline. I believe the down trend will resume again with $1,050 as a target.
