Gold bulls have made a pause to the strong upward trend and gold price got rejected near the previous high of $1,355. We recommend you to pay attention to short positions with the stop being very close has proved correct. However, despite the double top and rejection at $1,355, gold price has only briefly broken below the support level of $1,330 only to find it again above this level. Gold price is being supported at $1,330 both by the Ichimoku cloud and the upward sloping trend line.
As shown above, gold price is supported and the trend could very well be a sideways consolidation before new highs. Short-term resistance is found at $1,353-55. It is expected broken bears to close positions and reverse to longs with $1,380-90 target. Short-term support is found at $1,330 and then at $1,305. An hourly close below $1,330 will push the gold price at least towards $1,320.
The battle at the 61.8% Fibonacci retracement still holds between bulls and bears. The market is seen in the daily chart above making a consolidation. A break outside the boudaries of this consolidation will start a new trend. So support and resistance levels if broken should be respected and followed, not played agains.
The material has been provided by InstaForex Company - www.instaforex.com
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