Gold price reversed upwards yesterday after breaking above the short-term downward sloping channel that started at $1,345. This might be a short-term upward bounce before a final new low towards $1,250-60. We will be more confident that this upward bounce is the big upward bounce we expect, if prices break above $1,300 and if Gold price makes a higher low than $1,275.

In the 1 hour chart, Gold price has broken above the Ichimoku cloud and now we may see a back test on the Ichimoku cloud and a test of the 38% and 50% retracements. If this pull back makes a higher low and then reverses back up, we will have a short-term trend change confirmation. A move above $1,295 will also support bulls move higher. Short-term support is found at $1,285-80. Short-term resistance at $1,295-$1,300.

The 4-hour chart above shows how intermediate-term trend remains bearish. The first important resistance is found at $1,310 and then at $1,320. If $1,295-$1,300 is broken upwards, these are the two targets that I believe will be easily reached. All this assumes that we do not make a lower low. If we make a lower low, then the upward bounce targets will also change. For now, we have a weak buy signal after the break out we saw yesterday. Stop for bulls is $1,275 and confirmation above $1,295. Target to close any long position is $1,310-20. Long-term strategy remains the same. We plan on selling near $1,350 with $1,400 stop and $1,100 target.