Volatility was high in the Gold market on Friday as price made a strong reversal from $1,275 to $1,250 and back up again to new highs towards $1,280. The trend remains bullish and will be in danger only if the metal breaks below Fridays low.
Gold price is inside an upward sloping blue channel and also above the Kumo (cloud). The Friday lows marks the lower boundary of the bullish channel and is now important support. Resistance is at $1,265-68. Gold is expected to move higher towards $1,300-$1,350.
Blue lines - downward sloping wedge
Price has broken above the downward sloping wedge and above the weekly Kumo (cloud). Price is approaching the important resistance of 38% Fibonacci retracement at $1,330. Oscillators have turned overbought on a weekly basis and this justifies a pullback even towards $1,100. Bulls need to be very cautious.
The material has been provided by InstaForex Company - www.instaforex.com