Gold technical analysis for February 8, 2016

Gold continued to move towards new highs above the resistance levels last week giving impressive strength signs which increased chances of a long-term bullish reversal underway. The level of $1,050 could be a long-term low, but if it gets broken we should expect prices to fall to the area between $950 and $850.

Red lines - bullish channel

Gold price continues to trade above the Ichimoku cloud inside the red upward sloping channel. The price also remains above the kijun- and tenkan-sen indicators confirming that the short-term trend is bullish. Despite the pullback made on Friday, prices reversed sharply upwards confirming that bulls are in control.

Resistance is now seen at the previous high of $1,190. The upper boundary of the weekly cloud is also at $1,190 so this is a huge resistance level. Weekly support is seen at $1,150 and next at $1,125-20. Short-term support is sound at $1,160 and next at $1,144. Gold is moving higher, but it is still too early to tell if this is an impulsive move higher.