Gold is trading in the green and is struggling to stabilize above the $1,800 level. The price has developed a minor down channel, an upside valid breakout will validate a further growth in the upcoming period.

The gold price is traded at $1805.75 level after the failure to stay below the broken $1,800 psychological level, confirming once again that the outlook is bullish. The USD’s drop helps the yellow metal to jump higher in the short term.

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You can see that the price has decreased a little from the $1,818 high, has tested the PP ($1,795) level and now it approaches the minor channel’s resistance. A valid breakout from this chart pattern will suggest buying again in the short term if you are not long already.

The next upside target is seen around the $1,818 high, at the 50% Fibonacci line, and at the R1 ($1,820) level. You should know that the bias is bullish and the gold price could resume its uptrend as long as it stays above the median line (ML) of the ascending pitchfork.

  • GOLD Trading Tips

The breakout from this minor channel will signal a further increase at least until the $1,818 level. Only another higher high and a valid breakout above the R1 ($1,820) will really confirm a larger growth. The R2 ($1,843) and the upper median line (UML) could be used as upside targets if the gold will resume its upside journey.

A further upside movement could be invalidated if the rate will drop and stabilize below the median line (ML) of the ascending pitchfork.

The material has been provided by InstaForex Company – www.instaforex.com

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