GGold price has reached yesterday our target area. Trend remains up and in early trading we see Gold price make a pull back below $1,310. Short-term support is found at $1,290 and $1,300. I believe the buying is not over in Gold but bulls should be very cautious and start thinking of taking profits.
Short-term resistance is found at $1,320 and $1,333. Gold price is way above the Ichimoku cloud and has made a parabolic rise which is a sign of increased volatility and danger. The most probable outcome of this upward spike, is for Gold price to consolidate above $1,300 and then make a final upward move towards $1,330-40. Would I go long now. If I had no position I would prefer to wait fot a better pattern to emerge with a better risk reward ratio. If I was long I would choose to take partial profits and raise my stops.
Trend remains up so I would not think yet of selling Gold. Gold could reach the upper triangle boundaries as wave E. This means that it can reach $1,330-40. So everything is pointing up in Gold price and there is no bearish sign. So I prefer to be neutral, take profits or remain long. Short positions will be taken into consideration only if Gold price reaches a strong resistance level like $1,330-40.
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