As expected, gold is making higher highs this morning as the price remains inside the bullish channel. There are several warning signs as the RSI is diverging which justifies a pullback in the short term. This pullback will be confirmed once the price breaks below $1,193.
Red lines – bullish channel
Black line – divergence
Gold price is trading above both the Tenkan- and Kijun-sen (red and yellow line indicators). Trend remains bullish in the short term. Price has reached our target at $1,200-$1,220 which acts as a key medium-term resistance. I expect a rejection from this area as there are also bearish divergence signs on the 4 hour chart.
On a weekly basis, the gold price reached the lower boundary of the Kumo cloud as was initially expected. The oscillators are just turning upwards and this is a bullish long-term sign. Gold may find the current resistance too strong to be broken and might pull back for a couple of weeks. Bulls need to be cautious.The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
As expected, gold is making higher highs this morning as the price remains inside the bullish channel. There are several warning signs as the RSI is diverging which justifies a pullback in the short term. This pullback will be confirmed once the price breaks below $1,193.
Red lines – bullish channel
Black line – divergence
Gold price is trading above both the Tenkan- and Kijun-sen (red and yellow line indicators). Trend remains bullish in the short term. Price has reached our target at $1,200-$1,220 which acts as a key medium-term resistance. I expect a rejection from this area as there are also bearish divergence signs on the 4 hour chart.
On a weekly basis, the gold price reached the lower boundary of the Kumo cloud as was initially expected. The oscillators are just turning upwards and this is a bullish long-term sign. Gold may find the current resistance too strong to be broken and might pull back for a couple of weeks. Bulls need to be cautious.The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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