Technical analysis of gold for July 18, 2017

The Gold price is in a short-term bullish trend targeting $1,260. Today we may see a pull back towards $1,230 but I believe this will only be a back test of the breakout. I remain short- and long-term bullish.

Blue lines – bearish channel

The Gold price has broken out of the bearish channel and the 4 hour Kumo (cloud). The trend is now bullish as we are above short-term resistance. Short-term support is at $1,230 and next at $1,215. Bulls do not want to break below $1,215.

Red lines -wedge pattern

On a daily basis, the Gold price broke out of the wedge pattern. We noted this pattern and the break out on time and said how bullish this was. The target remains at the start of the wedge and at the daily Kumo (cloud) at $1,250-60.

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

Source:: Technical analysis of gold for July 18, 2017