Gold price reached the lower boundary of the trading range its been in since late June. Price reached $1,385 but bounced back towards $1,397. Price remains inside the trading range and so do we remain neutral.
Yellow rectangle- resistance
Red rectangle - support
Our plan remains the same. Buy near red support area, sell near yellow resistance area. As long as price respects the boundaries so do we. If we see price break below the red rectangle we should then expect price to fall towards $1,350-30 at least. If price breaks above the yellow rectangle I expect to see $1,500-$1,525. Taking into consideration the bigger picture and the fact that Gold has rallied nearly 200$ since the May lows, the bearish scenario for a pull back towards $1,350 and a back test of the break out area is more probable than a continuation of the up trend.
