With an impressive reversal from $1,140, Gold price has managed to break all resistane levels and also break above $1,207 which was the recent high. Gold price managed to catch most traders off guard as this reversal was so strong that we seldom see such intraday moves in Gold.
Gold price has made a high at $1,221 which was the 78.6% retracement of the decline from $1,255 to $1,130. Could this impressive upward bounce be the end of a corrective move that fooled both bulls and bears after the Swiss referendum? Could be. Bulls in order to defend this trend reversal will need to hold the Monday low at $1,141. Breaking this low will put the end to any bullish scenario. First, bulls will need to defend the short-term support levels at $1,173 and at $1,190.
Gold price in the daily chart is showing signs of a trend reversal. However, Monday's daily candle is an impressive statement by bulls. However, we should note that price remains below the Ichimoku cloud and is reversing from near the 61.8% retracement. There is high probability that at $1,221 we say the end of a three wave upward correction. Gold price made a high yesterday also at the 38% retracement of the decline from $1,343. So the Fibonacci confluence around $1,220 is very critical resistance. Long-term trend remains bearish. As long as price is below the Ichimoku cloud I believe we can see $1,050.
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