Gold price remains near the highs of the trading range it has been trapped in for the past few sessions. Trend remains bullish but with a weak momentum. Price is hovering above support levels and could continue higher towards $1,310. However I believe the downside for Gold is not over.
Blue lines – bullish channel
Black line – trend line support
Gold price is in a bullish short-term trend. Support is at $1,290 and most important support is at $1,281. Resistance is at $1,300 and next at $1,310. I do not believe the upside in Gold has much more potential.
On a daily basis, Gold price has entered the Ichimoku cloud. Price could now move towards the upper cloud boundary at $1,310. However, this cloud could also be seen as resistance. So any rejection and a break below $1,280 on a daily close will strengthen my bearish short-term view for $1,250. I remain longer-term bullish but I believe bulls will get a better chance to buy lower.The material has been provided by InstaForex Company – www.instaforex.com