Gold remains inside weekly bullish channel

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Gold price broke above the short-term trading range and is closing in on our next upside target of $1,570 which is the 161.8% Fibonacci extension of the first upward move. Trend remains bullish as bulls have so far defended the key support at $1,500-$1,490.

Red lines – bullish channel

Green line- major trend line support

Blue lines -extension targets

Gold price continues to make higher highs and higher lows. Price has made a new yearly high at $1.555. The short-term resistance at $1,530 was broken and this has fueled this push above $1,550. Support remains key for the short-term at $1,500. Resistance is at $1,570. In shorter time frames there are bearish divergence signs by the RSI. Eventually this signs will be confirmed and my most probable target for a pull back would be $1,450-$1,400. No reversal sign yet, but bulls need to be cautious. Raising their stops is key in order to stay inside this bullish trend, but also avoid being caught with the wrong position when the correction comes.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Gold remains inside weekly bullish channel

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