On Friday, Gold price broke above the Ichimoku cloud and trend line resistance was signaling that a bigger upward bounce could be expected over the new few days. Gold price has potential to reach $1,200-$1,220 as a corrective bounce. Huge weekly support is seen at $1,130. In case it gets broken, the price is likely to be pushed towards $1,000.
Green line = short-term support
Red lines= bullish channel
Black line = Medium-term resistance trend line
Gold price is trading inside a bullish short-term price channel shown in the 4 hour chart above by the two parallel red lines. Gold price has managed to break above the Ichimoku cloud. Do not forget that price was below this cloud since $1,265.
Blue line = huge support at $1,130
Orange lines= downward sloping channel
Gold price in a weekly basis remains in a downward sloping trend.The price is above critical support and a bounce could be justified from current levels. The important thing traders need to watch is a possible break below $1,130. This will give me a longer-term sell signal towards $1,000 or even $900.
