Gold price is trading around $2,020. Short-term trend remains bullish after the triangle breakout. Medium-term trend remains also bullish as price is still inside the upward sloping channel since September. The upper channel boundary is at $2,065. In our previous posts we noted that a break out above the triangle pattern would give us $2,050-60 as a target. So far price has only managed to reach as high as $2,031. Gold price has the potential to reach our target and the upper channel boundary resistance. However the downside potential is bigger and that is why it is not wise to open new long positions at current prices. The RSI is providing bearish divergence signals. Price is approaching key resistance levels. The lower channel boundary support is at $1,860. Downside potential is much bigger than the upside. Bulls should not get overconfident.
The material has been provided by InstaForex Company – www.instaforex.com
Blue lines- bullish channel
Gold price is trading around $2,020. Short-term trend remains bullish after the triangle breakout. Medium-term trend remains also bullish as price is still inside the upward sloping channel since September. The upper channel boundary is at $2,065. In our previous posts we noted that a break out above the triangle pattern would give us $2,050-60 as a target. So far price has only managed to reach as high as $2,031. Gold price has the potential to reach our target and the upper channel boundary resistance. However the downside potential is bigger and that is why it is not wise to open new long positions at current prices. The RSI is providing bearish divergence signals. Price is approaching key resistance levels. The lower channel boundary support is at $1,860. Downside potential is much bigger than the upside. Bulls should not get overconfident.
The material has been provided by InstaForex Company – www.instaforex.com
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