Ichimoku cloud indicator analysis of Gold for May 2, 2018

Gold price as expected from last week approached the $1,310-$1,300 support area. Price has reached weekly support levels and combined with short-term bullish divergence signs, we could see a bounce at least towards $1,330-40 area if not a bigger move higher. Weekly trend remains bullish but technically we have seen no real progress for the last 3 months.

Red line – long-term resistance

Green line -long-term support

Gold price remains above the weekly cloud. Trend is bullish. Price has pulled back and is challenging the weekly cloud and the weekly kijun-sen (yellow line indicator). Gold has also reached the green long-term trend line support. I expect Gold to start a new upward move from current levels and break above $1,365. We could see below $1,300 as a stop hunt for weak bulls, but for this to be the case a break below $1,300 should be short-lived. Next support if week closes below $1,300 is at $1,240.

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Source:: Ichimoku cloud indicator analysis of Gold for May 2, 2018