FX.co ★ Gold technical analysis for February 9, 2016

Gold price continues to trade higher above an important high of $1,190 reached in October. The price however remains inside the long-term downward sloping wedge. The long-term bearish trend is now being seriously challenged.

Gold price continues to trade above the 4-hour Ichimoku cloud and above both the tenkan- and kijun-sen indicators. A trend is bullish as the price hit higher highs and higher lows. Important short-term support is found at $1,160. Resistance is seen at $1,200.

Red lines - downward sloping wedge pattern

Yellow line- multi year resistance

Gold price is testing the weekly Ichimoku cloud resistance levels and the upper boundary of the downward sloping wedge that is in force for the last two years. The price has bounced off $1,050 area as we expected exceeding our most optimistic expectations for a bounce. Gold has every chance to reach a long-term low and reverse at $1,050.