Gold price is bouncing as expected after breaking out of the bearish short-term channel. The trend remains bearish but we could already have completed the entire correction and the next leg up towards $1,400 starting now. It is important to hold the recent low at $1,259.
Gold price is trading below the Ichimoku cloud on the 4 hour chart. The trend remains bearish but there is an initial reversal off $1,259. Could the entire correction be over?we will know if we break above $1,295. Until then the $1,259 low is important for the short-term view. If it is broken, the price may go to $1,250-45. Short-term resistance by the Kumo is found at $1,277.
Red line – medium-term support
Blue line- long-term support
Black line – long-term resistance
The weekly chart remains slightly bullish as the price is above the weekly Kumo. However, we need to be cautious as the price is still below the long-term black trend line resistance. Holding above the red trend line is a good sign and I do not expect to break it. I was expecting to touch the weekly cloud but it is not necessary. My long-term view remains bullish even if we dip to $1,240-$1,200.
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