Technical analysis of gold for May 8, 2018

Gold price is preparing a bounce towards $1,330 at least. The price is making a base around $1,310. I'm bullish on gold. This could be a short-term bounce but there are also chances of this being the start of a big move higher towards $1,400. The key moment for this scenario is the break above $1,365.

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Blue line - horizontal resistance at $1,365

Red line - horizontal support

Black line - short-term resistance

Gold price has touched the 50% Fibonacci retracement for the second time and is moving above the black short-term trend line resistance. Gold has been moving sideways for a few months in a trading range between $1,365 and $1,300. Currently, at the lower end of this range, there are signs of a bounce coming. I'm bullish not only for the swing trade inside the range, but also because there are a lot of chances that gold will start a big leg higher towards $1,400. For this scenario to be confirmed, we need to break above $1,365.

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