Gold price has reached our target area of $1,255-50. Price is showing bullish divergence signs in the 4 hour chart. Trend remains bearish as price is still below the Ichimoku cloud and both the Tenkan- and Kijun-sen.
Gold price is making lower lows and lower highs. Trend is bearish. I believe it is time for bears to take some profits or tighten their stops. I believe a strong bounce towards at least $1,270 is imminent. Support is at $1,255-50. Resistance lies at $1,262. Upon a break above the short-term resistance, we can reach $1,270.
As said yesterday, gold price is expected to move towards the weekly Kumo (cloud) support. We are just 10$ away from that support. This is not the area where people should be selling gold. This is the time for bears to take their profits. A big upward reversal could be expected.The material has been provided by InstaForex Company – www.instaforex.com