FX.co ★ Gold technical analysis for February 10, 2014

Despite reversing to a short-term downward trend last Friday, Gold price has held above important support levels and did not break intermediate term support. Gold price has reversed upwards and is now preparing for a move towards $1,300-$1,320. Gold price has broken the sideways triangle upwards and continues the upward correction that started at $1,180. Short-term trend has changed to up and the pattern of higher highs and higher lows prevails in all time frames.

Short-term movement has brought Gold price above the Ichimoku cloud support and has held it despite volatility in the market last Friday. The break out is getting stronger and we should expect $1,300 to be seen this week.

The daily chart continues to support bullish trend and it looks like Gold has formed a cup with handle that will soon break upwards towards $1,300-$1,320. So long positions with $1,240 stop are preferred.