Gold price remains in a short-term bullish trend targeting resistance at $1,150. The price is heading towards higher highs and higher lows. I expect the medium-term resistance at $1,150 to be tested while a weekly close above $1,155 could open the way to $1,200.
Red line – resistance
Black lines – bullish channel
Gold price is trading inside the bullish channel as shown in the chart above. The price is right at the channel support, so we should expect an upward move from current levels towards at least $1,150. This is where the red trend-line resistance is found. Breaking above this resistance will open the way to $1,200.
The weekly chart remains promising us that bulls will try to approach the kijun-sen (yellow line indicator). If bulls manage to close the week above this resistance, we should expect a move higher towards $1,200 in the weeks to come. Another rejection at $1,150 will be a bearish sign of an upcoming pullback towards $1,100.The material has been provided by InstaForex Company – www.instaforex.com