Gold continues higher reaching very close to the February's highs. This is a crucial junction for Gold. A rejection here could push the price back towards $1,220-30. The long-term view remains unchanged and bullish as long as we hold above $1,122. However, we could soon move a level higher if we break above $1,300.
The price is in a bullish short-term trend above the Ichimoku cloud support and inside a bullish channel as shown in the 4-hour chart above. Short-term support is at $1,243. Resistance is found at the February's highs at $1,263-64. Cloud support for a bigger correction is found at $1,235. This would be a gift for Gold bulls.
Blue line - long-term support trend line
After the reversal off the $1,045 lows in 2015, Gold has made a strong upward move to $1,375 and the pullback seen last December was a higher low. Gold has very important resistance ahead at $1,300 where the long-term downward sloping trend line comes. A break above it will confirm the trend change on a weekly level.
The material has been provided by InstaForex Company - www.instaforex.com
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