Technical analysis of Gold for June 29, 2016

After testing support at $1,300-$1,305, gold is bouncing upwards towards resistance of $1,330. The price has broken slightly above the triangle pattern, so we would like to see a break above $1,325 to confirm the triangle breakout.

Gold has also retraced 50% of the rise after the referendum in the UK, and this complies with all necessary conditions for the resumption of the uptrend. Moreover, the price remains above the Kumo and is making higher highs and higher lows from yesterday's dip to $1.305.

Today I chose to post the monthly chart of gold. The monthly price action remains below the Kumo but above both the tenkan- and kijun-sen indicators. Moreover, these two indicators are about to cross and give a bullish signal. However, a cross below the Kumo is not as strong as a sign that it was above the Kumo, so bulls will have to be very cautious of the nearby monthly resistance at $1,400.The material has been provided by InstaForex Company - www.instaforex.com