FX.co ★ Gold Technical analysis for October 8, 2014

Gold price continues higher towards $1,220 resistance. Price has broken above the downward sloping channel but remains below the Ichimoku cloud. Gold price has been below the Ichimoku cloud since August 15th and the $1,300 price level. Longer-term trend remains bearish. I still expect a move towards $1,000.

Blue line= support

Green line= price channel

Gold price is testing important short-term resistance at $1,220-25. The support at $1,180 has provided a strong upward bounce that I believe is corrective of nature and that the longer-term down trend is still in control. At $1,235 we find the 38% retracement of the decline and the possible end of the bounce if we break above $1,225.

Blue line = support

In the 30 minute chart above you see the short-term trend is bullish. This will be the case as long as Gold price is above the blue upward sloping trend line and above the Ichimoku cloud. Support is found at $1,210 and $1,202. Holding above these levels is critical for the short-term trend. Short-term target is $1,235 at th 38% retracement.