Ichimoku indicator analysis of gold for May 19, 2017

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Gold price as expected is pulling back from the important weekly resistance at $1,260. Bulls now we need to see a higher low relative to the May lows at $1,214. A corrective pullback that will not hurt the bullish scenario should hold above $1,234.

Gold price is trading above the 4-hour cloud. Trend is bullish. Gold price could bounce from current levels as price has found support at the 38% Fibonacci retracement of the rise from $1,214. Next important support is at $1,234 where the 61.8% and the cloud supports are found. Bulls should not lose that level. On the other hand bears stopped the rise right at the important resistance of $1,260. Now they need to break back below the cloud for the move towards $1,150-60 to start.

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Red line -long-term resistance

Gold remains inside the weekly Kumo (cloud). Weekly trend remains neutral. Price remains below the weekly trend line resistance. However the bounce off the lower cloud boundary was a bullish sign. Bulls however need to break above the weekly cloud at $1,280 for the bull trend to be confirmed.

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

Source:: Ichimoku indicator analysis of gold for May 19, 2017

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