Technical analysis of Gold for August 21, 2018

Gold price has reached our first short-term target of $1,195 after breaking above $1,183. Trend however remains bearish for the medium-term and this bounce is still considered corrective in nature and against the prevailing trend. Only a break above $1,200 and if prices stay above it will signal a trend change.

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Black lines - wedge pattern

Gold price has reached its first extension target. Resistance is here at $1,195-$1,200 area. A rejection at current levels is very possible. If Gold price is going to make new lows over the coming weeks, we should see a rejection at current levels. If Gold continues higher we will start looking at the August lows as a major low and that a new up trend has started. So far price is making higher highs and higher lows in the 4 hour chart. If price stabilizes above $1,200 we could see more upside over the coming weeks. Short-term support at $1,185-80 must be respected and price should hold above this area if we are going to see this rally continue higher.

The material has been provided by InstaForex Company - www.instaforex.com