Gold price has continued its upward move as we expected from our latest analysis after breaking above the short-term trend line resistance and has already reached our minimum target level of $1,140. Gold price is now in a strong resistance area and we could see a bearish reversal any time. This however does not mean it cannot move higher.
Blue lines – bullish channel
Gold price is making higher highs and higher lows. By breaking above $1,127 it confirmed our bullish bias and as support at $1,115 was held, price accelerated higher towards our target area of $1,140-50. Price is above the Ichimoku cloud confirming the bullish trend. Support is at $1,110.
Blue area – resistance
The weekly chart shows how this week's candle has reached my bounce target area where we also find the tenkan-sen (red indicator). This is the first important resistance of this bounce. The entire area of $1,140-50 is important resistance. A weekly close above this area will bring Gold price towards the Ichimoku cloud at $1,200. A rejection here will push price to new lows.
The material has been provided by InstaForex Company – www.instaforex.com