Gold is trading at $1,814 and it is approaching the $1,817 yesterday's high. The price is strongly bullish and is expected to climb higher in the upcoming period. The USD's aggressive drop has helped the yellow metal to resume its upside rally.
Finally, the gold price has invalidated the bearish divergence signaled by the RSI indicator, so the rate could register significant growth in the short term. Still, we cannot exclude a minor drop, maybe the price will come back to test and retest the $1,800 level.
Gold it was almost to reach the R1 ($1,820) level which could represent an important near-term obstacle. The breakout above the dotted line and above the $1,800 has confirmed that a further increase is coming.
A sideways movement, consolidation, between the $1,800 and the R1 ($1,820) could bring another long opportunity. Besides, a valid breakout above the R1 level will confirm a further increase towards the upper median line (UML) and towards the R2 ($1,861) level.
- GOLD Trading Tips
A $1,800 level retest, false breakdown, will bring a great long opportunity if you are not long already. The upper median line (UML) of the major ascending pitchfork remains as the major upside target.
The gold price could approach the UML after the rejection from the median line (ML) and most important because the rate has stabilized above the inside sliding line (SL) of the ascending pitchfork.
Gold is bullish, so we cannot talk about a selling opportunity right now, I believe that only a major bearish engulfing, or any other reversal pattern which will invalidate the breakout above the $1,800 could bring another short opportunity.
