Gold price got rejected at the 38% Fibonacci retracement earlier this week but we see the potential of a move higher towards $1,480 and the 50% Fibonacci retracement at least. Gold price seems to be supported and as long as price is above $1,460 the chances favor bulls for a short-term bounce higher.
Red line - short-term resistance
Orange rectangle- short-term target
Green line- major resistance trend line
Gold price is holding above the black upward sloping trend line support. Bouncing off this support could lead to a move towards the red resistance trend line and the orange rectangle target area. In previous posts we noted the high chances of a bounce when Gold was trading below $1,460. Our initial target was $1,470-75 and next the 61.8% Fibonacci retracement at $1,490 which was also critical support, now resistance. Recent price action has made it more clear to us that the upside target should be $1,480. We still consider this bounce as a selling opportunity.
