Gold price has reached our short-term target after breaking above $1,319. Price is making higher highs and higher lows and has reversed confirming our bullish reversal signals I noted yesterday. Short-term trend is bullish but medium-term trend remains neutral as price remains trapped inside the multi-week trading range.
Gold price has broken above the 4-hour cloud resistance. Gold price is now at the 61.8% Fibonacci retracement of the decline from $1,353. Important short-term support is at $1,320. Bulls do not want price to move below this level as this will increase the chances of breaking $1,300.
Red lines – trading range
Black line – support trend line
Gold price has bounced off the lower cloud boundary and very close to the lower trading range boundary. This bounce was expected as I have been pointing out for the last few sessions bullish positions should be preferred around $1,300 and as long as price is above $1,300. The next big test will be the break of $1,350-60. A rejection here will increase the chances of breaking below $1,300 in the near future. However a break above $1,350-60 will open the way for $1,400 and higher.
The material has been provided by InstaForex Company – www.instaforex.com
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