Gold price is pulling back as short-term support is broken. This is considered a normal corrective pullback in a larger bull market. We warned bulls that profits should be taken and positions should be protected as a pullback was imminent. Now the pullback has started and could even bring price back towards $1,300.
Gold price is finding short-term support at the kijun-sen of the 4-hour chart. Support is at $1,354-55. Resistance is at $1,364. A break above short-term resistance could bring price to new highs near $1,400. If price closes below $1,354 on the 4 hour chart, we should be expecting a deeper pullback towards $1,335-40.
Red lines - expanding triangle
The resistance at $1,370 rejected price and the expanding triangle scenario is still in play. First important daily support is found at $1,342 where the daily tenkan-sen is found. A daily close below the tenkan-sen will be a bearish sign. My logner-term view remains bullish.
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