Last week Gold bears were warned by the bullish divergence signs and the fact that support at $1,280-90 area was respected. Gold price is now bouncing having broken above short-term resistance heading at least towards $1,310-15 area.
Blue rectangle - short-term resistance
Red rectangle - short-term target
Blue lines - bullish divergence
Black line - major trend line resistance
Gold price has broken above short-term resistance and as long as it holds above the blue rectangle area I expect prices to move higher towards the red rectangle and to test the black major trend line resistance around $1,310-$1,315. Support remains strong at $1,290-80 and we will not go towards $1,250-60 as long as price respects this support level. In the short-term we are bullish expecting price to challenge more important resistance levels. Bulls need to recapture $1,300 and stay above it in order to hope for a move towards $1,350-60 first than a move to $1,250 and lower.
The material has been provided by InstaForex Company - www.instaforex.com