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.
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