Technical analysis of gold for April 4, 2017

Gold has broken out and above the short-term bearish channel as expected and is challenging the $1,263 top. A break above that top is expected as well as a move towards $1,300. Trend is now bullish and important short-term support is found at $1,240.


Red lines - bearish channel (broken)

Gold has moved above the 4-hour Kumo (cloud) and is breaking higher. Trend is bullish. A back test of the broken cloud could be seen today but overall trend remains bullish and we continue to target $1,300-$1,310.


Red line - resistance

Black line - long-term resistance

Blue line - long-term support

The weekly candle is about to break above the resistance of the 2017 highs. Once broken, I expect Gold price to move towards the black trend line resistance around $1,300. I continue to be optimistic as long as the price remains above $1,194.

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