Gold price has broken out of a short-term triangle pattern looking for a move higher towards $1,280-$1,300 at least. The $1,250 was an important support level and bouncing off this area was very possible as we expected. Could the entire decline be over at the last low?
Red lines – triangle pattern
Gold price has short-term resistance at the 4-hour Ichimoku cloud at $1,272. A break above it will open the way for a bounce higher towards $1,300 where the breakdown occurred. A backtest of the breakdown area is very possible. Support is at $1,250. If broken, we expect a move lower towards $1,220.
Green line -long term resistance trend line
I remain long-term bullish about Gold. Gold has made a weekly breakout above cloud resistance. Price got rejected at the downward sloping trend line from its all time highs. Price could pull back towards the Ichimoku cloud support but eventually I expect Gold price to break above the green trend line.
The material has been provided by InstaForex Company – www.instaforex.com
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