Gold price has staged a three wave upward move so far from $1,130 and has managed to get close to the important resistance trend line at $1,240-50. This trend line comes a long way back from $1,800 and every time Gold price reached it we saw a strong reversal lower. Will we see the same thing again? Resistance is at $1,250 and as long as Gold remains below it then we should expect a downward reversal like the last time.
Short-term support is found at $1,215 and at $1,180. The $1,180 support is the most important one. Resistance is the recent high at $1,240 and then the red long-term trend line we show in the chart above. As long as Gold is below that red trend line I expect to see a trend reversal and new lows towards $1,050. Breaking above resistance could signal a big upward move towards $1,500 or even higher.
As always, thank you for taking the time to read my new post.
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.