Technical analysis of Gold for October 8, 2018

Gold price remains inside the trading range below the important resistance of $1,207-11. As long as we are below this level there is still danger of moving back towards $1,180. A break above this level will open the way for a push higher towards $1,220-40.

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Red lines - trading range

Green lines - long-term bearish channel

Gold price is above the long-term bearish channel but this cannot be counted as a break out as long as price remains inside the trading range. Traders should be patient. A higher low if formed around $1,190-95 could unfold into a bullish break out. I prefer to be a buyer around $1,190-05 looking for a break out over the coming weeks towards $1,220-$1,240. Stop for longs at $1,178.

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