Gold did drop strongly yesterday and the price tested the level of $1.480 but it got fast rejection, which is sign that .buyers are still present and that the used the drop to load even more long positions. The breakout of the level of $1.507, did confirm more potential upside on the Gold and potential re-test of $1.530.
Important levels to watch:
Yellow rectangle – Important support ($1.507)
Orange horizontal line – Swing high ($1.531)
Based on the 1H time-frame, I found the up breakout of key short-term resistance at the price of $1.506, which is good sign for further upward movement. MACD oscillator turned to be into positive territory, which is another good confirmation for the further upside. Short-Mid and long term trends are bullish and my advice is to go with the direction of the overall trend.
The material has been provided by InstaForex Company – www.instaforex.com