Ichimoku indicator analysis of gold for October 26, 2017

Gold is bouncing as expected. However, the price remains below the 4hour Kumo (cloud) while testing the first important short-term resistance by the kijun-sen at $1,283. The short-term trend remains bearish but we have several indications that the low could already be in.

Red lines - bullish wedge pattern

Gold price has broken out of the Wedge pattern as expected. The precious metal is now back testing the broken upper Wedge boundary. Resistance is at $1,283 and the next one lies at $1,290. Gold bulls will need to break these levels in order to have a chance to test the important medium-term resistance area at $1,307-15. Support is at $1,270 and the next one is at $1,250.

On a weekly basis gold price is trying to retake the kijun-sen (yellow line indicator). The trend remains bullish as price is still above the weekly Kumo (cloud). The next important resistance on a weekly basis is at $1,308. Breaking and closing above it will be a bullish sign.