Gold price made a new higher high confirming the uptrend in which it currently is. Gold price made also a higher low yesterday and held above support levels. Our supporting trend lines was held and price moved higher closer to our 38% Fibonacci retracement target of the decline from $1,391.
Gold price is trying to break above the Ichimoku cloud area towards the 38% retracement at $1,322 which is our short-term target. This is the first important resistance. If at first this resistance rejects price, then we should expect a pull back towards $1,300 and another move higher towards the 50% retracement to complete the upward corrective bounce from $1,275. If the 38% retracement is broken upwards easily, we should expect the second leg of the upward bounce to continue towards the 61.8% retracement.
In the short-term, the trend remains up and as long as price trades above $1,296, we remain bullish targeting $1,322. The rise from $1,275 could also be seen as a complete upward 5 wave movement. This implies that even if price pulls back from current levels, at least one more upward movement similar to the $1,275-$1,309 rise should be expected.
The material has been provided by InstaForex Company - www.instaforex.com
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