Ichimoku cloud indicator analysis of Gold for April 30, 2018

The gold price has broken above the downward sloping wedge pattern and is now back-testing it. Gold could make one more new lower low around $1,311 today before reversing its trend to the upside. The trend remains bearish as the 4-hour candlestick is still below both the tankan- and kijun-sen indicators.

Red line – resistance

Blue lines – wedge pattern

Upward sloping blue line – bullish divergence

The gold price has short-term support at $1,311 where we find the lower wedge pattern boundary. $1,320-24 is short-term resistance. In case of a break above it, we could see a test of the 4-hour cloud at $1,333. The short-term trend changes to bullish on a break above $1,338. I prefer to get bullish on gold around $1,310-$1,300 or with a break above $1,324. I expect the gold price to bounce soon.

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Source:: Ichimoku cloud indicator analysis of Gold for April 30, 2018