Gold price remains in a short-term uptrend after closing above the weekly resistance levels. This bounce could bring price even towards $1,200 if price holds above $1,130. In the short term, I see a small triangle pattern being formed and I expect an upward break out to new short-term highs as the most probable outcome.
Dark blue lines – triangle pattern
Cyan lines – bullish channel
Gold price is trading inside an upward sloping channel and above the Ichimoku cloud. The trend is bullish for the short-term as long as price is holding above $1,130. In the short term, we see a triangle being formed. Triangle support is at $1,150 and resistance at $1,163.
The weekly chart has reached the 61.8% retracement level and is making a pull back. This rejection is an important sign for what could follow. Can this bounce in Gold price be over?Can we start a new downtrend from these levels? Yes we can. Confirmation of the trend reversal will come once we break the $1,130 on a weekly close.The material has been provided by InstaForex Company – www.instaforex.com