Gold price has made a pullback yesterday, as expected. Price made a short-term top at least and pulls back below the first short-term support of $1,290. The pullback could even reach $1,260. The medium-term trend remains bullish with $1,330 possible target.
Black lines = price channel
The upward sloping channel, as shown on the 4-hour chart above, demonstrates that although the trend remains bullish, the pullback could reach the lower channel boundary at $1,270. The kijun-sen support is at $1,280. Cloud support is at $1,250. As long as Gold price is below $1,300, the correction is ongoing. Breaking above $1,300 will confirm the end of the correction and a possible rise with $1,230 as target.
The daily chart with a doji at the top is showing signs of reversal that could test the tenkan-sen support at $1,260, and if broken, the kijun-sen support will be at $1,235. I prefer to stay neutral as Gold price has started a reversal at an important resistance level. This implies that we could expect a deeper than normal correction.
The material has been provided by InstaForex Company - www.instaforex.com
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