Gold price has broken above the short-term top at $1,288-91 area and has reached the pivot level of $1,300. Managing to hold above it will open the way for a move towards $1,350. Failure to maintain bullish momentum will lead to a sharp rejection and reversal. So far the bullish scenario prevails.
Black line - resistance trend line (broken)
Since trading near $1,266-70 area we were expecting for Gold to bounce towards $1,280-90 or even $1,300. Now that Gold has broken also above the black trend line resistance we see things from a more bullish perspective. Gold price has support at $1,288-90. Bulls must hold above this level. Bulls need to continue making higher highs and higher lows. Bears on the other hand need to show more determination now and reverse trend below $1,288 to regain control.
Concluding, the breakout above the black trend line is an important event and this marks the change of the trend to bullish again and the end of the corrective phase since $1,347 peak.
The material has been provided by InstaForex Company - www.instaforex.com