The Gold price as expected is bouncing towards the broken neckline resistance of $1,326. Support at $1,310-$1,307 held and produced this bounce. It is important for bears to see a rejection today and a break below $1,312 otherwise bulls could be preparing for a higher high and a break towards next important resistance of $1,337-40.
Magenta line - long-term resistance
Blue line - neck line resistance
The Gold price has made a Head and shoulders pattern, broke below the neckline and is now backtesting it. I expect the price to get rejected at current levels. Support is at $1,312 and next and most important one at $1,307. Break below it and we are off towards $1,290.
On a daily basis, the Gold price remains below the tenkan-sen (red line indicator). Resistance by the tenkan-sen is at $1,329. As long as we see daily close below it, I expect the Gold price to move towards the daily cloud support of $1,290.
The material has been provided by InstaForex Company - www.instaforex.com
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