Gold price is showing signs of a pullback after the breakout above the bearish short-term channel. At the same time it has broken out of the downward sloping weekly wedge pattern and right above the 78.6% Fibonacci retracement. We cannot rule out a new low yet.
Red lines - bearish channel
Short-term support is at $1,140 where the short-term Ichimoku cloud support is found. Price has finally broken out and above the short-term cloud resistance. This is the first bullish sign after a long time. A new low cannot be ruled out yet. Price would need to break above $1,200 to confirm an important low is in.
With weekly oscillators oversold, diverging and turning upwards, price is finally out of the downward sloping wedge. This justifies a big bounce in Gold price towards at least the lower boundary of the weekly cloud at $1,220. A break above it will confirm that an important low is in.
