Yesterday I recommended a tentative short on gold with a tight stop. That was a failed trade, as last night both Asia and Europe bid gold up and then today it traded in a tight range in the 90s throughout the US session.
Now that gold has strongly escaped the cloud in a bullish manner, we can begin to the level of bullishness from the Ichimoku indicators:
- The Tenkan Sen is above the Kijun Sen ~ Bullish
- The price is above both Tenkan Sen and Kijun Sen ~ Bullish
- The Chinkou Span is above past price and has no major resistance coming up ~ Bullish
- The future kumo is thin and green ~ Bullish
- The current kumo is somewhat thick and green ~ Baby bullish
- Senkou A & B, Kijun Sen, Tenkan Sen, and Chinkou Span are all pointing upwards ~ Bullish
This is very good - not a single bearish reading. We could perform the same exercise on the USDJPY chart and we would come away with a bearish mark in every category. These two are in agreement that gold will go up and UJ will go down.
You can see these facts illustrated below. The top chart is the daily gold chart and the bottom chart is the daily USDJPY chart.
Below you can see the standard chart I use, with the 15min timeframe used on the bottom and 1 day timeframe used on the top. This shows a very promising entry point with a bounce off recent Kumo support. I recommend a small long here, with a somewhat tight stop, maybe 2 points. Once gold breaks past the Kijun Sen and the Tenkan Sen moves above the Kijun Sen, you may add to your position. This some luck and maybe a little comey testifying we will be sailing into the 1300s.
Take a look at this supporting silver chart provided by @dankh.
Happy trading!