Technical analysis of gold for November 1, 2016

Gold price remains above support and is preparing to break above the recent highs at $1,285. A daily close above $1,280 will help Gold push towards $1,300 and higher. I remain bullish from $1,250.

Blue line - support trend line

Gold price is trading above the Kumo (cloud) and the blue upward sloping trend line. Price is making higher highs and higher lows. Support is at $1,270 for the short term. Resistance is at $1,285. A break below $1,260 will most probably push price towards $1,220 but I believe this is the less probable scenario. The most possible outcome will be a push towards $1,300 and higher over the coming days.

Gold price is heading towards my short-term target of the daily kijun-sen (yellow line indicator). A move towards $1,320-30 where the Ichimoku cloud is found could also be expected. Prices have reversed from the 38% Fibonacci retracement of the entire rise from $1,045 to $1,375. I remain long-term bullish.The material has been provided by InstaForex Company - www.instaforex.com

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