Gold price has broken to new higher highs today and is moving towards our target at $1,250-60 after breaking above the critical short-term resistance at $1,224. The longer-term view for Gold price remains bearish and this bearish scenario will be tested at $1,250-60.
Orange lines – bullish channel
Red line = critical medium-term support
Blue line = short-term support
Gold price is making higher highs and higher lows. The price is trading above the Ichimoku cloud and inside the bullish channel. Next target for Gold price is seen at $1,250-60. Support is at $1,212 for the short term but critical support is found at $1,185 for the longer term.
The weekly chart for Gold price shows how bulls have managed to hold above the tenkan-sen and the kijun-sen got violated. This is a bullish sign. However, this manages only to turn the longer-term trend from bearish to neutral. Gold price is approaching the resistance of 61.8% Fibonacci retracement now. In order to prepare a longer-term upward reversal, bulls are likely to need to break this level and also break above the cloud at $1,265.
The material has been provided by InstaForex Company – www.instaforex.com