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23.06.2016 08:55 AM
Technical analysis of Gold for June 23, 2016

Gold is showing signs of a bounce that could at least push the price higher towards $1,280. The price has retraced as far as the 50% Fibo level of the entire rise from $1,200, and we should consider long positions with stops at $1,260 as we could see a bigger upside reversal.

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Blue lines - bearish channel

Gold is trading below the Ichimoku cloud on the 4-hour chart and inside the bearish channel. The price has reached the 50% Fibonacci retracement and started to bounce. At least a short-term low is in place, so we could first see a bounce to $1,280.

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The weekly candle remains above the tenkan-sen (red line indicator) support at $1,258. We have a triple divergence in the RSI and the stochastic oscillator. This points lower for the weeks to come unless we see a sharp rise and a new higher high over the coming days.
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