In the last trading week, the Gold has closed above the important 1265 level of the strong downside support. The safe haven demand and USD consolidation have made this push for Gold easier.
This close is now opening the complete reversal of the recent medium-term downtrend as we can see it on the monthly chart. The 100 SMA (red line) 1351 level is the first stronger resistance.
On the weekly chart, the instrument is pressing the downside Pitchfork channel resistance line but the clear weekly close above 1265 has marked the upside reversal, taking into concern also the fact that the 200 SMA (blue line) has been broken. This level and the 1260-1280 zone is the support and potential buying zone in the case of the pullback.
On the daily chart, we can determine using Fibonacci Extension the target after the strong 1265 resistance level upside break. The A point is 1130 level the B point is broken 2017 high 1268 level and the C point is 1197 retrace of the Dec. 2016 – March 2017 swing high.Te target in extension is 1335 and the support zone is 1268-1280. Stop loss on long trade entries should be below this zone.
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