Ichimoku indicator analysis of gold for June 20, 2017

Gold price has reached our $1,245 target yesterday. It is time for Gold bears to be cautious and use protective stops as any day now we could see a reversal in Gold back towards $1,260-70.

Trend is bearish. Price is below both the tenkan- and kijun-sen indicators. Price is around the 61.8% Fibonacci retracement so a bounce is justified from current levels. However this does not mean that we can continue lower towards $1,230 and the 78.6% Fibonacci retracement before a bigger bounce.

Black line -long-term resistance trend line

Red line - short-term support

Blue line - long-term support trend line

The double top in Gold and the new rejection at the black trend line does not make me change my longer-term bullish view, however opens up a short-term bearish scenario where we can test the blue trend line support specially if we break below the weekly Kumo. Therefore it is important for short-term bulls to hold above $1,200.

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