Gold did break out downward channel and confirmed the new money from on the upside. The level of $1,503 is very important for the Gold and it is key intraday support. I expect further upside.
Red lines – broken downward channel
Magneta rectangle – Key support
Yellow rectangle – Resistance and target 1
Blue rectangle – Resistance and target 2
Gold gave us a buy signal after breaking above $1,503 and it is confirming the breakout by successful testing of 20SMA (middle Bollinger line). Now Gold could trade higher towards $1,515 and $1,526. ADX reading well above 30 level and increase of momentum on the MACD oscillator isvery strong sings for the underlying bullish condition. As long as the Gold is trading above $1,493, I would watch for buying positions on the pullbacks.
