Gold prices have paused their rise from 1,210 exactly at the 38% Fibonacci retracement of the 1,360-1,210 decline. At the same price level there is also the broken Head-and-Shoulders neckline that is being back tested. Resistance is strong in the 1,260-70 area. If it is broken upwards, we could see a push towards 1,300.
This rise from 1,210 could very well be wave A of the corrective bounce. That resistance was met, we could be in wave B down that could push prices towards 1,230-40. We anticipate the entire upward corrective bounce to end near the red downward sloping trend line and reach at least 50% retracement at 1,290.
In the daily chart we can see how the downward sloping channel from 1,360 was broken, something that confirms that the move that started at 1,360 is over. We are now challenging this downward trend that has resistance for bulls at 1,275-1300. We remain bullish biased in the short term as prices could reach the trend line resistance that connects 1,433 and 1,360. In the longer term, we believe that the lower lows and lower highs will continue until prices reach 1,100-1,000.
The material has been provided by InstaForex Company – www.instaforex.com
Gold prices have paused their rise from 1,210 exactly at the 38% Fibonacci retracement of the 1,360-1,210 decline. At the same price level there is also the broken Head-and-Shoulders neckline that is being back tested. Resistance is strong in the 1,260-70 area. If it is broken upwards, we could see a push towards 1,300.
This rise from 1,210 could very well be wave A of the corrective bounce. That resistance was met, we could be in wave B down that could push prices towards 1,230-40. We anticipate the entire upward corrective bounce to end near the red downward sloping trend line and reach at least 50% retracement at 1,290.
In the daily chart we can see how the downward sloping channel from 1,360 was broken, something that confirms that the move that started at 1,360 is over. We are now challenging this downward trend that has resistance for bulls at 1,275-1300. We remain bullish biased in the short term as prices could reach the trend line resistance that connects 1,433 and 1,360. In the longer term, we believe that the lower lows and lower highs will continue until prices reach 1,100-1,000.
The material has been provided by InstaForex Company – www.instaforex.com
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