Gold price has finally reversed and changed a short-term trend to bullish targeting the level of $1,100 at least. There is also a chance that we have seen a long-term important low and a new uptrend has started, but confirmation will come only at much higher levels above $1,190.
Gold price broke the downward sloping wedge upwards and moved above the Ichimoku cloud as can be seen in the 4-hour chart. I would expect a back test of the broken cloud at $1,070, but it is not necessary. The minimum bounce target is at the 38% Fibonacci retracement, but I would expect a bounce much higher.
Red lines - long-term downward sloping wedge
The weekly chart continues to favor long positions rather than short. The price has made an initial bounce off the lower wedge boundary, and I expect a strong bounce at least towards the kijun- and tenkan-sen resistance levels (yellow and red line indicators) to take place. The weekly stochastic is oversold and is turning upwards confirming my bullish stance.
