Technical analysis of Gold for April 21 2016

Gold is trying to break above the upper triangle boundary and it seems that it will manage to do it today. The price is setting up a bullish formation that could bring Gold towards $1,300 very soon. Bulls do not want to see the price break below $1,240.

Black lines -triangle

Gold is trading above the Kumo on the 4-hour chart and is about to break above the triangle pattern. This is a bullish sign. Short-term support is at $1,240 and is very important for the bullish scenario of a move towards $1,300. Resistance is at $1,260-65.

On the daily chart, the price is supported by the daily Kumo and is preparing to make new short-term higher highs after making a higher low at $1,243. Gold is most probably going to push towards $1,300 very soon but any break below $1,240 will cancel this scenario.The material has been provided by InstaForex Company - www.instaforex.com