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FX.co ★ Ichimoku cloud indicator analysis of Gold for April 12, 2018

Ichimoku cloud indicator analysis of Gold for April 12, 2018

The Gold price broke to new highs yesterday and came very close to the January highs of $1,365. However, buying interest did not last long at those levels and a reversal with medium-term bearish implications followed. The inability for Gold to finally break above $1,365 and the pull back towards $1,350 is not a good sign.

Ichimoku cloud indicator analysis of Gold for April 12, 2018

Red line - long-term resistance

Blue line - support

Green line - long-term support

The long upper tail of yesterdays candle is a bearish sign and a sign of weakness and inability to break the long-term resistance. If bulls can hold above $1,340 and make another try and break above $1,365, then we will have the much-awaited breakout. If bears remain stronger and push price towards $1,330-20 we will have a false breakout and the trap will be closed for bulls. This could have longer-term bearish implications as such formations and false breakouts signal the start of big reversals. So $1,300 could be broken if this proves to be a false breakout. Bulls no matter what will need to hold above $1,340-30.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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