16.01.201511:08 Forex Analysis & Reviews: Gold technical analysis for January 16, 2015

Long-term review

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Gold price made a decisive breakout yesterday above $1,245. This was needed for the breakout not to be considered as fake. With this breakout our first target of $1,260-70 has been reached. However, there is still some more upside potential that could bring Gold price towards $1,300.

Green line = support

Gold price continues its upward trend by making higher highs and higher lows. Price is in a clear uptrend above the Ichimoku cloud. the short-term support at $1,245 is the previous breakout level that bulls should defend. Breaking below that level could bring prices towards $1,230.

Gold price, as shown on the daily chart, has broken the triangle pattern to the upside. The two targets that I have are above $1,300. The first target comes from the equal size of the base of the triangle and the second target is equal to the first rise in prices from $1,130 to $1,240. Trend is bullish on the daily chart and is also supported by the fact that price is above the Ichimoku cloud and Ichimoku indicators are bullish.

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