Gold price got rejected by the short-term resistance at $1,285 and is testing important support level at $1,250. Breaking below this level will probably push the index towards $1,200. Bulls need to break above $1,285 to resume uptrend with $1,330 as target.
Black line = resistance
Green line = support
Gold price is now below the Ichimoku cloud. This is a bearish sign. The price is below the black trend line but above the support at $1,250. A break below the support will be a sell signal with the first target of $1,220. A break above the resistance will be a buy signal with $1,330 as target.
Red lines = horizontal support levels
Gold price is testing the 38% retracement once again. Initially, this support level produced a bounce towards $1,290, but the resistance was not broken. The prices are pulling back right now to retest the support at $1,250. Breaking below the support of the 38% Fibonacci retracement will push the price towards $1,220 where the 61.8% retracement is found.
The material has been provided by InstaForex Company - www.instaforex.com
