19.10.201608:56 Forex Analysis & Reviews: Technical analysis of Gold for October 19, 2016

Long-term review

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Gold price continues to trade sideways inside a tight trading range. A breakout above $1,263 will open the way for a push higher towards $1,280-90. I'm bullish at current levels.

Red lines - trading range

Gold price has entered the 4-hour Ichimoku cloud. A trend is neutral. We could see a push towards the upper cloud boundary. This is my minimum bounce target. Support is at $1,250. Up to now any push below $1,250 has been met by buying strength.

On the daily chart, Gold price has broken above the daily tenkan-sen (red line indicator). This is a sign of strength that implies a move towards the kijun-sen (yellow line indicator) is very possible. Oscillators are diverging at oversold levels and we have another warning for Gold bears. This is the area to think of buying and not shorting Gold.

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