FX.co ★ Gold analysis for January 20, 2017

Recently, gold has been trading sideways at the price of $1,203.00. In the 4H time frame and using the Ichimoku cloud, I found that there is potential space for a downward correction. I found cross Tenkan sen-Kijun sen which is a sign for potential weakness and it is weak sell signal on 4H time frame. Anyway, according to the 1H time frame, I found that price has broken the Ichimoku cloud for downside, which is also a sign of weakness. Pay attention on downward levels at $1,195.85 and $1,178.55. Watch for potential selling opportunities.

Resistance levels:

R1: 1,203.35

R2: 1,205.30

R3: 1,208.45

Support levels:

S1: 1,197.10

S2: 1,195.15

S3: 1,192.05

Trading recommendations for today: Watch for selling opportunities.