Ichimoku indicator analysis of gold for May 12, 2017

Gold price is bouncing and trying to break out of the bearish channel. Trend remains bearish as price is below the 4-hour Kumo. Important resistance levels ahead at $1,245 and at $1,260 must be broken so that the bullish scenario of $1,300-$1,400 is realized.

Blue lines - bearish channel

Gold price is breaking above the tenkan- and kijun-sen indicators on the 4-hour chart. Price remains below the Kumo and is still inside the bearish channel. Trend remains bearish. Short-term resistance is at $1,230 but the most important level is at $1,245 and at $1,260.

As expected by my last few posts, Gold is finally bouncing off the $1,200-$1,220 area. The

target is between $1,240 and $1,260. Breaking above it will open the way for a bullish move above $1,300.

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