Gold price fell to new lows at $1,237 yesterday but reversed strongly upwards breaking above the bearish channel and at the same time holding above the Kumo. As we expected, a new high was made but the bullish momentum declined shortly after it.

Blue lines depict bearish channel.

Gold price is now testing the 38% Fibonacci retracement of the rise from $1,237 to $1,285. Price remains above the Kumo cloud in the 4-hour chart and the Tenkan-Sen (red indicator) is about to cross the Kijun-Sen (yellow indicator). This is a bullish sign.

On a weekly basis, price remains in an up trend after breaking above the weekly Kumo resistance. Support is at $1,237 now and a break below will be bearish for gold. Price will move lower towards $1,150 if that happens. If the up trend continues, my target is at $1,300-$1,320 as I have been saying during the last few weeks.