FX.co ★ Gold technical analysis for July 4, 2014

Gold price was very volatile yesterday. We saw Gold price pull back towards $1,310 but as we mentioned in yesterday's analysis this was the short-term support level that should hold. Support did not break and Gold is back above $1,320 trying to break above the double top at $1,334.

The Ichimoku cloud provides strong support for Gold. Gold price has short-term resistance at $1,334 and support at $1,310. Since price is supported we feel it is more probable to see an upward breakout towards $1,350-60. If support fails, then we could see $1,290 being tested.

Wave E is still under way and and as price is breaking above the Ichimoku cloud in the daily chart, we can expect a short-term blow off towards $1,350-60. Our preferred scenario remains the longer-term bearish and that is why I'm looking for a good sell level and sell setup to arise.