Gold has extended its recovery higher in the upcoming days and we need to beware of pullback threats. On the downside, the support comes in at the 1270.65 level where a break will turn attention to the level. A further down will cut through here and will open the door for a move lower towards the new lows. The pair trading below here could trigger further downside pressure targeting the new low level. Conversely, the pair’s resistance resides at the 1277.48 level where a break will aim at the 1283.41 level. A turn above there will expose the 1286.32 level and resistance stands at this level. The pair’s four-hour oscillator is bullish and pointing higher suggesting further strength rising in the 24.0 zone. All in all, Gold looks to recover further higher.
Gold has further improved by the move above the resistance at the 1277.48 level. The precious metal is now trading above the support area. The four hourly chart support can be found at this levels and it is expected to show further increase.
In the long term, the pair’s trend is rater positive and a further upside movement very likely to happen. The pair’s support is located at the 1273.81 level which has been broken and stays above this level until now. A strong support can be found at the new found support area.
The bulls would regain control on a decisive move back above the pivot band at the 1277.48 level. However, this is a significant medium term barrier which would complete a new pattern. The pair’s resistance also coincides with the previous resistance now turned support and capped the upside aside from a brief intraday spike to the 1273.81 level at the beginning of the day. The recent candle was much in favor for the bulls with a consolidation at a high of this level as the momentum indicators specifically the stochastic also approach key areas where they have been holding above the 20.0 levels. The four hourly chart shows a decent uptrend has been broken now with the resistance at the 1277.48 level increasingly key near term. The four hourly oscillators are consistently rising back above the 20 level and would reflect a stronger bullish trend. The pair trading below the 1273.81 support puts 1270.65 level back in sight.
Gold price continues to rise and begins testing the resistance line that appears. The price finds support with positive pressure against the intraday trading to confirm the continuation of the bullish bias in the upcoming sessions.
In general, we will continue to suggest the bullish trend on the intraday in short term basis as long as the 1273.81 level remains intact. The pair breaching at the 1277.48 level will reinforce the expectations of achieving our positive targets that start at the 1283.41 and extend to 1286.32 levels.
The pair’s expected trading range for today is between the 1273.82 support and 1283.41 resistance levels.
Expected trend for today: Bullish
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