Published On: Fri, Mar 3rd, 2017

Gold: Ichimoku clouds

InstaForex

Let’s look at the four-hour chart. Tenkan-sen line is below Kijun-sen, both lines are directed downwards. Confirmative line Chikou Span is below the price chart, current cloud is ascending. The instrument has broken down the cloud and is still falling. One of the previous minimums of Chikou Span line is expected to be a support level (1238.20). The closest resistance level is the lower border of the cloud (1224.00). 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 above the price chart, current cloud is ascending. The instrument is trading between Tenkan-sen and Kijun-sen lines. The closest support level is Kijun-sen line (1221.90). The closest resistance level is Tenkan-sen line (1243.50).
On the four-hour chart the instrument has broken down the cloud, forming a strong signal to sell. On the daily chart we can see a correction of the upward movement. It is recommended to open short positions at current price with the target at the level of previous minimum of Chikou Span line (1238.20) and Stop Loss at the lower border of the cloud (1224.00).
Forex Analysis

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