Gold price is making new highs, and price remains in a bullish trend. The price remains below the January highs but it is expected to move above them. This is not the time to be chasing the bullish trend. When breaking above the $1,334 resistance was the time to buy. Now it is time to wait.
Gold price is trading above the 4 hour Kumo. Support is found at $1,337 and next at $1,327-17. Gold will most probably make a new greater high towards $1,380-90, but traders should not chase this trend, unless they use a tight stop.
Magenta line – long-term resistance
Blue trend line – long-term support
On a weekly basis, the weekly candle is a breakout bullish candle. Weekly support is at $1,300. Any pull back above $1,300 is to be bought for a move higher. However, a break below $1,300 will be a very bearish sign that could push the Gold price towards the long-term blue trend line support. So be careful in case $1,300 breaks. Until then, the bulls will be in control. First warning sign will come with the break of $1,315.
The material has been provided by InstaForex Company – www.instaforex.com