Gold is trading above the $1,200 area and has made a double bottom at $1,206. Breaking below this level will push the price towards $1,190. Upside targets are $1,230 and $1,260. We are close to a bullish reversal. Gold has already bottomed or is very close to making an important low.
Black line - long-term resistance
Blue lines - bearish channel
Gold is trading inside the bearish channel. The upper channel resistance is at $1,230. This is also where the Kumo is found. The trend remains bearish but with several indications that we could soon see a bullish reversal. Non-Farm payrolls are announced today so we should expect the price to start a trend at the time of the announcement.
The weekly candle remains above the 38% Fibonacci retracement, and the stochastic has fallen from overbought levels. The price remains above the weekly Kumo (cloud) and this area will possibly provide a bullish bounce towards at least $1,260. Even if the price breaks below $1,200, I will see this as an opportunity to buy.
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