FX.co ★ Gold Technical analysis for October 22, 2014

Gold price is consolidating making another bulish flag pattern that could push price towards $1,265. The bounce from $1,181 remains inside the upward sloping channel and I continue to believe this is a corrective bounce that will soon end and start a new downward move to push Gold price towards $1,150. 

Gold price remains above the Ichimoku cloud in the 4 hour chart and inside the upward sloping channel. A new higher high is very possible as explained below and this is expected to complete the upward bounce from $1,181. Once this upward bounce is complete, I will be looking to go short once Gold price breaks below the Cloud support at $1,230 targeting $1,150 first and $1,050.

In the 30 minute chart we observe a second bullish flag pattern that could bring Gold price towards $1,265 if $1,253 is broken. I believe we are still in a corrective upward bounce and longer-term traders should be looking for signs of weakness to sell and be patient.