Gold price is trading higher after the reversal on Friday. We have been warning Gold bears that the bullish divergence signs combined with the important support of 61.8% Fibo at $1,260 justified a strong bounce. However we do not see this as just a bounce but the start of a bigger move higher.
Black line - resistance (broken)
Red line - resistance (broken)
Gold price has made an important low at $1,260. I believe we have started the next leg up towards $1,400. I'm very bullish Gold. Short-term support is now at $1,272. Resistance is at $1,293 and next at $1,316. Breaking above these levels will open up the way towards $1,350-75.
