Technical analysis of Gold for June 16, 2016

Gold price exploded to new highs above $1,300 following the FOMC. The trend remains bullish as support levels were held yesterday. Despite the warning signals that oscillators were giving, the pullback we expected did not happen. Instead, prices moved strongly upwards.

Blue lines - bullish channel

Red lines - higher lows

Gold price continues moving higher above $1,300 inside the bullish channel and it is still above the tenkan- and kijun-sen indicators. The price is making higher highs and higher lows. The larger trend remains bullish but bulls should continue raising their stops.

We have a weekly new higher high that is confirmed neither by the stochastic oscillator nor the RSI. However, the longer-term trend remains bullish, and $1,200 is confirmed by an important low for the larger bullish reversal scenario. Gold is in breakout mode after the new high and we remain bullish in the long-term as long as price is above $1,200.The material has been provided by InstaForex Company - www.instaforex.com