Gold price produced a bearish reversal candlestick formation yesterday but price although it tested yesterday lows, has managed to respect support and bring in more buyers and close higher than Monday. Trend remains bullish.
With stochastics turning lower from overbought levels, with RSI at its highest level since the June top, we do not see any point chasing this bullish trend. Bulls should better raise stops and protect their gains. Yes trend remains bullish with no reversal signal yet. However a pull back will come. But do not misunderstand this and think it is time to bet against the trend.
In Ichimoku cloud terms Gold price remains in bullish trend as long as price is above $1,490. Short-term support is found at $1,535 and at $1,510. I will be expecting a move towards cloud support at $1,500-$1,490 once the tenkan-sen (Red indicator line) is crossed by price on a daily basis. Until then we remain short-term bullish also.The material has been provided by InstaForex Company – www.instaforex.com