Gold price remains in a bullish trend. Price continues to make higher highs and so far there is no sign of weakness. In today's analysis we take a look at the major short-term support and resistance levels that we should take into consideration. Bulls need to be very cautious.
Gold price is still above both the tenkan-sen and kijun-sen indicators. Support is found at $1,646, next at $1.622 and finally at $1.595-$1,600. As long as price is above $1,595-$1,600 trend is bullish. This is not the time to buy Gold. This is the time for Gold bulls to protect their positions and raise their stops. Resistance is very important here at $1,650-70 area.
Is Gold price forming an inverted head and shoulders pattern? Maybe. The neckline is at $1,680. This is a key resistance. On the other hand both the RSI and the Stochastic oscillator justify a pull back from current levels. So traders need to be very patient.
