Gold is trading at $1,911 at the time of writing and it seems determined to reach new highs soon. Technically, the rate has escaped from a continuation pattern and now it should develop a new leg higher.
Still, we have to wait for another higher high to really validate the upwards movement. Gold continues to increase ignoring the USDX's short-term rebound. The yellow metal was into a corrective phase, but now it seems ready to resume the major uptrend.
- GOLD Breakout Confirmed!
As you can see on the H4 chart, the price of gold has stabilized above the triangle's resistance, it has retested the $1,900 level and now it approaches the median line (ml) of the ascending pitchfork.
A valid breakout above the median line (ml) and above the R1 ($1,927) validates a larger upwards movement. The bullish scenario could be invalidated only by another lower low, drop below $1,882 former low.
- XAU/USD Trading Tips
We'll have a great long opportunity if the price makes a bullish closure above $1,933 former high. $2,000 and $2,075 levels are seen as targets.
A short opportunity will be validated by a drop below the lower median line (lml) and under the $1,848 level.
