Gold price is challenging its recent highs. Price did not move as low as $1,270 as we initially expected maybe because the corrective pattern followed was a triangle. Trend remains bullish as long as price is inside the bullish channel.
Green rectangles – support areas
Purple lines – bullish channel
Black lines – triangle pattern
The medium-term trend in Gold remains bullish as long as we trade above the $1,240 area. Short-term target is a move above $1,300 maybe towards $1,320. Longer-term target is at $1,350 where we find a long-term resistance. Short-term support is at $1,275 and if broken we could see a move towards $1,265 at least if not lower. So far we have no warning signs from the RSI but we are very close to seeing the first bearish divergence. Bulls remain in control of the trend.
The material has been provided by InstaForex Company – www.instaforex.com