logo

FX.co ★ Ichimoku cloud indicator analysis on Gold for May 20, 2021.

Ichimoku cloud indicator analysis on Gold for May 20, 2021.

Gold price is bouncing as expected towards $1,850. Short-term resistance at $1,825 was broken and price came very close to our short-term bounce target of $1,850. In Ichimoku cloud terms trend in the Daily chart remains bearish as price is still below the Kumo (cloud).

Ichimoku cloud indicator analysis on Gold for May 20, 2021.

With price having broken above the tenkan-sen (Red line indicator), Gold price has the potential to continue higher towards the kijun-sen (yellow line indicator) found at $1,892. Support is at the recent low at $1,806 where price formed a higher low. The tenkan-sen is at $1,825. Previous resistance is now support. So we have the key levels to watch out for. In conclusion, although Gold is in a bearish trend, a bounce higher is justified and should be expected over the coming days as long as price is above $1,825.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
Go to the articles list Go to this author's articles Open trading account