The gold price has pulled back to test the breakout area of $1,262 again. I believe this week it is ready for another move higher towards $1,280-90 at least. Gold has made an important low at $1,247, and a new up trend has started that will push it back towards $1,300 and maybe above it.
Red line – resistance (broken) now support
The gold price is above the 4 hour Ichimoku cloud and is bouncing off the trend line support that was once resistance. This pull back is a healthy back test for bulls that will now push it to a higher high after making a higher low. This pattern supports higher prices.
The weekly candles remain above the tenkan-sen (red line indicator) and are targeting the kijun-sen (yellow line indicator). As long as price is above $1,260 bulls have more chances of success. I remain longer-term bullish.
The material has been provided by InstaForex Company – www.instaforex.com
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