Ichimoku cloud indicator Daily analysis of Gold

Gold price is testing the important short-term resistance of the tenkan- and kijun-sen indicators at $1,570. A rejection in this area would open the way for a move towards $1,550-45 again with increased chances of breaking below it. Bulls need to close the week above $1,570 in order to hope for more upside to come next week.

So far trend in the Daily chart remains bullish. Price breaking below both the tenkan- and kijun-sen indicators is a warning sign. If the tenkan-sen (Red line indicator) crosses below the kijun-sen (green line indicator) then we have a weak sell signal. If the Chikou span (black line indicator) breaks below the candlestick formation we have another bearish signal. The most important bearish signal would be for price to break below the cloud. The most probable scenario for me is that price moves towards the cloud support between $1,520-40. This scenario has many chances as long as price is below $1,570-75.