Gold price has held above $1,275 support on Friday and gave early signs of a short-term trend reversal. We mentioned in previous analysis that in order for Gold price to push lower, we needed to see a a daily close below $1,275. If support is not broken, a bounce back above $1,300 should be anticipated. We favored long positions as long as price was above $1,275 on a daily basis and above $1,268 on an intraday basis.
Gold price broke on Friday the short-term downward sloping trend line resistance and that was the first bullish sign we got after a long time. Gold price also moved above the short-term Ichmoku cloud resistance and is now above it. Gold price has also made a higher high and higher low pattern from April 24. We could see a pull back towards $1,300-$1,294 but it is not for sure. I expect this upward momentum to continue and challenge the $1,331 highs.
On a daily basis, Gold price is heading towards the Ichimoku cloud lower boundaries resistance. It is the big test for bulls to show strength and if what we show as wave 2 was really wave 2 or just wave A of the correction. If Gold holds above $1,280-90 support, we should expect a test of the resistance at $1,320-$1,331. Breaking above that level we should anticipate Gold price to reach $1,340-$1,350. Our longer-term view for some time now is to wait for $1,340-50 to sell with long-term target of $1,100-$1,200 and stop at $1,391.
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