Gold price consolidates near the recent highs above $1,200. If short-term support at $1,200-$1,190 holds, then we could see another break out towards $1,260-$1,270. If support fails, we should push lower towards $1,170. A bullish flag is being formed and a break out above $1,215 will give us a buy signal.
Gold price is consolidating near the 38% retracement of the decline from $1,343. Price is below the Ichimoku cloud. So, strong resistance at $1,220 if broken we could see another upward move towards at least the 50% retracement at $1,240 or even the 61.8% retracement at $1,262.
Red lines = triangle pattern
Gold price is making a triangle pattern between $1,215 and $1,200. A break out above $1,215 will put the recent highs to the test and if support fails we should push towards $1,170. There is a bullish flag pattern also that could give us a target of $1,270. A breakout above $1,220 will confirm that we are heading towards $1,270. A rejection at current levels will imply that the downward correction is not over.
The material has been provided by InstaForex Company - www.instaforex.com
