Gold price is bouncing towards $1,280-$1,300 area as expected and as we noted in our previous analysis. The bullish divergence signs are playing out but bulls need to be very cautious and not get overconfident. Trend remains bearish as long as price is below $1,300.
Red line - major resistance trend line
Green rectangle- major resistance previous support
Gold price is back testing the important area of $1,280-90. The bullish divergence sign in the RSI we noted in previous posts, justifies the bounce towards $1,280 we currently see. Price could move higher towards $1,290 or even towards $1,300. As long as price is below the red trend line trend is bearish. Breaking above the red trend line would be an important win for bulls. As long as we stay below $1,300 target is $1,250-60.
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