Ichimoku cloud indicator analysis of gold for January 18, 2018

The Gold price is making lower lows but Ichimoku cloud trend remains bullish as price remains above the 4hour cloud. Key technical and cloud support remains at $1,309 and as long as we are above it, the trend remains bullish.

Red lines – bearish divergence signs

Green line – support trend line

Short-term support is at $1,319 at the upper cloud boundary. Short-term resistance is at $1,333 where we find the tenkan- and kijun-sen. Price has broken below the two indicators and this is a first warning sign.

Magenta line – resistance

Blue line – long-term support

We warned that there are many chances of a rejection of the magenta trend line resistance. Gold price could pull back towards the weekly kijun-sen support (yellow line indicator) at $1,297. A weekly close below that level will push price towards the weekly cloud at $1,250.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Ichimoku cloud indicator analysis of gold for January 18, 2018