Published On: Mon, May 1st, 2017

Gold: Ichimoku clouds

InstaForex

Let’s look at the four-hour chart. Tenkan-sen and Kijun-sen lines have merged, the blue line is directed downwards, while the red one remains horizontal. Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument is trading below Tenkan-sen and Kijun-sen lines; the Bearish trend is still strong. One of the previous minimums of Chikou Span line is expected to be a support level (1253.86). Merged Tenkan-sen and Kijun-sen lines have become a strong resistance level (1262.38). On the daily chart Tenkan-sen line is above Kijun-sen, the red line is directed downwards, while the blue one remains horizontal. Confirmative line Chikou Span is approaching the price chart from above, current cloud is ascending. The instrument has entered the cloud. The closest support level is the lower border of the cloud (1243.28). The closest resistance level is Kijun-sen line (1265.85).
On the four-hour chart we can see a correction of the downward movement. On the daily chart the Bearish trend is still strong. It is recommended to open short positions at current price with Take Profit at the level of previous minimum of Chikou Span line (1241.43) and Stop Loss at the level of Kijun-sen line (1265.85).
Forex Analysis

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