Gold price marginally moved above $1,288 previous high but soon after got rejected. In our previous post we mentioned how important resistance area this is and there was always the danger of getting rejected. Now our focus is shifted to the short-term support at $1,276.
Blue line -major resistance
Blue rectangle - short-term support
Gold price got rejected at the blue trend line resistance. Price is now pulling back and a break below the short-term support of $1,276 will open the way for a move towards $1,250-60 or even lower. Resistance remains at $1,290-$1,300 area and as long as Gold remains below that level we remain bearish. A daily close above $1,290 will make me turn neutral, but a break above $1,300 will make me turn bullish. So far Gold seem weak and bulls unable to break resistance levels. If the double bottom at $1,266 breaks expect Gold to fall towards $1,250-$1,225.
The material has been provided by InstaForex Company - www.instaforex.com