Gold – Possible Trend Reversal
Gold/U.S. Dollar FX:XAUUSD
The price tries to pass through the cloud. We have a situation where Senkou B line holds the price. The market can still bounce from this line and move upward. But for this, the market will need reasons and fundamental support. As we can see the falling from 1350.00 levels, the market does not have it now.
But what if the price can break Senkou B and drops below the cloud?
In such a way we will have to consider the market as bearish , and it will be a time for searching sell opportunities based on the reversals from Ichimoku lines.
If the price can break 1280.00 support level too, the further downward movement will have the main target at the uptrend line. The price action at this line will show us further market movements. We will be able to expect the reversal from this line and possible buy opportunities from the hourly timeframes. The market will be able to reach the previous high at 1350.00 resistance zone .
If the price breaks this uptrend line, the continuation of the downtrend will be confirmed and we should be ready to see the falling to 1240.00 and 1200.00 support levels. This downward movement can be used for selling based on the daily and hourly timeframes.
If we look at the indicator DMI, we get signals confirming the downward movement. DMI is bearish and ADX line moves upward confirming that bears become stronger. Probably the downtrend will be started soon, and the breakout below the uptrend line will confirm it.
Source: TW DLavrov