FX.co ★ Technical analysis of gold for February 6, 2017

Gold price continues to make higher highs and higher lows. The price has broken and closed above $1,212 on a weekly basis opening the road for a move towards $1,300. The trend remains bullish. As long as the price is above $1,200 bulls are in control.

Blue line is short-term support trend line

Gold is trading above the 4-hour Ichimoku cloud. Support by the cloud is at $1,200. Trend line support is found at $1,210. Resistance is found at $1,230 and the next is at $1,250 for the short-term. As long as the price is above the cloud and above $1,200 short-term trend is bullish. Critical support is at $1,180.

On a weekly basis the price closed inside the weekly cloud. This implies that soon we should expect a test of the kijun-sen resistance (yellow line indicator) and after that a move towards the upper cloud boundary towards $1,280-$1,300. In the long term I remain bullish.