Ichimoku indicator analysis of gold for June 8, 2017

Gold price is showing reversal signs. It is still too early to tell if the pullback towards $1,250 we expect has started or something of a smaller degree. Important level to watch is at $1,277.

Gold price has broken below the 4-hour tenkan-sen (red line indicator). This is the first bearish warning. Short-term support by the kijun-sen (yellow line indicator) is at $1,277.

If this level is broken, a medium-term top will be in and a correction towards $1,250 will start.

Black line - resistance

Blue line - support

The weekly candle has broken out of the Kumo (cloud) and this is a very bullish sign. Price is testing important long-term resistance. A pullback towards the weekly cloud is expected before the next leg up that will eventually push price towards $1,400 and higher. I remain longer-term bullish about Gold and I believe bulls will get another opportunity to go long at lower than the current price levels.

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