Third week trading around the important long-term support of $1,170. The precious metal I believe is in a bottoming process and is expected to strongly reverse to the upside once the decline is complete. The low could already be in unless we need one more final flush towards $1,120-40. Important resistance is at $1,200 and a break above it will confirm that at least short-term trend has changed to bullish.
Exiting the bearish channel and breaking above the Ichimoku cloud in the 4 hour chart is what is needed by bulls to start a reversal. Support is at $1,160. Long-term resistance that needs to be broken is found at $1,330 where the long-term resistance trend line is found.
A break above the black trend line and entering inside the monthly cloud will be a very bullish sign. My target will be the upper Kumo boundary currently at $1,524. I believe Gold will reverse from current levels and will soon start its next leg up. Everything is set up nicely for a reversal. Oscillators in 4 hour, Daily and weekly time frames are either oversold and diverging or already turning higher from oversold levels.
What will be the causation behind the explosion in price I expect? Soon we will know.
Thank you for taking the time to catch up on my thinking. Good luck trading.
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.