Gold price reversed from $1,266 level towards $1,340 to back test the break out level as expected. So far, the back test was successful as price is bouncing strongly back above $1,355.
Gold price remains in a bullish trend. Kijun-sen support at $1,346 was respected in the 4 hour chart. Price remains above the Ichimoku cloud. Support is at $1,342 now, and resistance is at $1,365. Break above $1,365 and we go towards $1,389. Break support and we go to $1,330-20.
Blue line - long-term support
On a weekly basis, Gold is breaking out. Gold is above the long term resistance and remains bullish in all time frames. A weekly close below $1,332 would only cancel the bullish trend and give a reversal signal.
The material has been provided by InstaForex Company - www.instaforex.com