Gold price made a short-term reversal yesterday. The price has broken through support and finally the bearish divergence signals from the oscillators have been confirmed. The pullback was justified and normally this is inside the medium-term uptrend we are in.
Gold price is heading towards the cloud support at $1,210. Short-term oscillators have been relieved of the overbought conditions. The price pulling back is an opportunity for the bulls. I do not see this pullback as the start of a bigger decline. $1,233-34 is now important short-term resistance. If it is broken, the chances of a new higher high are increased. I do not expect Gold to break below $1,200.
Gold price got rejected yesterday at the kijun-sen resistance (yellow line indicator). This is natural to happen at the first try. As long as the price is inside the weekly cloud I expect the kijun-sen to be broken upwards and move towards $1,320. I remain bullish for Gold.
The material has been provided by InstaForex Company - www.instaforex.com