Gold price made a strong reversal from $1,290 support towards $1,300 but price remains below the critical resistance of $1,310. Eventually I expect price to break $1,310 for a minimum move towards $1,325-30, but as long as we do not break above $1,310, the precious metal is vulnerable.
Yellow line - medium-term resistance
Red lines -extension targets
Green lines - Fibonacci targets
Gold price is testing the medium-term resistance trend line at $1,300. Bulls must first break above this level to show a sign of strength. Another rejection at $1,300 will open the way for a move lower and towards new lows even towards $1,275-70. Support is at $1,290. Bulls do not want to see this broken. It will mean we are heading for $1,275. Bears do not want to see $1,310 broken. If this happens, a short squeeze will follow at least towards the next major resistance at $1,330-40.
