Gold price could be forming a bullish flag. The price is sliding downwards and sideways. It is likely to be heading towards the 38% retracement at $1,200 but it looks like we could see another leg higher towards $1,250 specially if the price breaks above $1,215-22.
Gold price will give a short-term buy signal if it breaks above this bullish flag pattern. The level to watch out for this potential break out is at $1,210. Strong resistance is also found at $1,222 where the previous high was. Breaking above the $1,222 high will be a strong buy signal with a target at $1,250. Support is at $1,190.
Weekly chart remains bearish as price is below the Ichimoku cloud and below the kijun-sen. The price is above the tenkan-sen and the kijun-sen. Strong resistance is found at $1,222 where the previous high and rejection was and where the 50% retracement is found. Breaking above this level will push Gold price towards the 61.8% retracement. Critical support at $1,175.
The material has been provided by InstaForex Company - www.instaforex.com