Gold - Consolidation. When can it become bullish?
Gold has been swinging in a range, Price action is a bit hard to read. Let's check the details.
Weekly:
- Ichimoku setup is still bearish biased, but it can quickly change to neutral in case Price moves back above Kijun Sen at 1220, which would also mean a Chikou Span cross back abovepast candles.
- Price action in last 4 weeks was corrective, after bears failed to make a lower low below 1140 in mid March. This week the Heikin Ashi candle shows undecision. From this pattern it is impossible to read the next direction short term.
- There is a multi-layered upper resistance zone: 1210 / 1220 (Kijun Sen) / 1240-50 (Senkou B - future Kumo top).
- Gold can turn into strategic bullish only above 1250.
Daily:
- Price is enterring the Kumo cloud. This is the absolute neutral zone. There is some short term bullish bias, as Tenkan is above Kijun. Support is at the minor uptrend line and Kijun Sen. We may see Price swinging within the Kumo and 1180-1220 range for a few more days.
- Upper resistance is clearly at 1220. A break above that could be a start of a bigger bullish move towards 1300. Lower support is 1180, below that we'd see bearish momentum accelerating again.
- Heikin Ashi signal is mixed. For five days it was bearish, yesterday and today candle pattern may be a bullish reversal attempt. Today candle body is a bit too small, but looking at haDelta/SMA3 short term I'd say it should rather go up.
Short term it is like flipping a coin. Longer term it can be buy above 1220 and a lot more bullish above 1250.
Weekly:
- Ichimoku setup is still bearish biased, but it can quickly change to neutral in case Price moves back above Kijun Sen at 1220, which would also mean a Chikou Span cross back abovepast candles.
- Price action in last 4 weeks was corrective, after bears failed to make a lower low below 1140 in mid March. This week the Heikin Ashi candle shows undecision. From this pattern it is impossible to read the next direction short term.
- There is a multi-layered upper resistance zone: 1210 / 1220 (Kijun Sen) / 1240-50 (Senkou B - future Kumo top).
- Gold can turn into strategic bullish only above 1250.
Daily:
- Price is enterring the Kumo cloud. This is the absolute neutral zone. There is some short term bullish bias, as Tenkan is above Kijun. Support is at the minor uptrend line and Kijun Sen. We may see Price swinging within the Kumo and 1180-1220 range for a few more days.
- Upper resistance is clearly at 1220. A break above that could be a start of a bigger bullish move towards 1300. Lower support is 1180, below that we'd see bearish momentum accelerating again.
- Heikin Ashi signal is mixed. For five days it was bearish, yesterday and today candle pattern may be a bullish reversal attempt. Today candle body is a bit too small, but looking at haDelta/SMA3 short term I'd say it should rather go up.
Short term it is like flipping a coin. Longer term it can be buy above 1220 and a lot more bullish above 1250.
