Gold price has reached the 61.8% retracement of the decline from $1,220 to $1,178. This is an important resistance level for a possible reversal. Breaking above $1,215 gold price could continue moving towards $1,250. Support at $1,178 is critical now. If it gets broken, we get a sell signal with thefirst target at $1,130.
Gold price hold support by the Ichimoku cloud and has bounced towards the 61.8% retracement. Now, the price is trading above the cloud and this is a bullish sign. Gold price has stopped rising at an important junction. We are going to see a reversal or a continuation of the up trend starting from this level. The short-term trend remains bullish as long as the price is above $1,200. The trend turns bearish below $1,178.
The weekly chart remains bearish. The price is bouncing towards the Kijun- and tenkan-sen resistance levels of $1,215-20. Last time when the price reached these two indicators we saw a rejection and a push towards $1,178. The price is below the cloud and I favor short positions if and when we break $1,178 with the first target at $1,130.
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