Gold price continues to rally towards highs as it breaks above important medium- and long-term resistance levels. This upward move has the characteristic of a bigger trend reversal as the form of the rise is impulsive.
The price continues to trade above the tenkan- and kijun-sen indicators. Support is found at $1,197 and next at $1,180. The Ichimoku cloud is at $1,150. The Oscillators are entering overbought levels with some bearish divergence signs as well. This implies that bulls should raise and tighten their stops.
The weekly chart has broken above the weekly Ichimoku cloud and above the downward sloping wedge. This is an important break out and bulls must hold above the resistance levels, because a fake breakout now will bring a big bearish reversal. So, bulls need to be very cautious.
