Technical analysis of Gold for June 8, 2016

Gold price consolidated for a couple of days after the Friday's spike up to $1,249. Price formed a bullish flag that was falsely broken yesterday and today we see a bullish breakout. Price remains below important long-term resistance of $1,260.

Black line - long-term resistance

Red lines - bullish flag

Gold price is trading above the Kumo (cloud) in the 4 hour chart confirming bullish trend is intact. Price made a pull back towards $1,235 yesterday but in a corrective formation. Price is rising to new short-term highs in an impulsive structure and this strengthens the bullish scenario that an important low is in at $1,200.

The daily chart shows price below the Kumo (cloud) implying that bulls need to show more strength in order for the daily chart to turn bullish. We could still see a rejection at the $1,255-60 resistance and a new low near $1,180-60 before the next big upward move. What is certain regarding the bullish scenario, is that Gold remains in a bullish reversal pattern as long as price is above $1,045. This is most probably an important long-term low.The material has been provided by InstaForex Company - www.instaforex.com