Yesterday's price action with the early decline and the strong finish was the first sign of Bull's strength. Today bulls confirmed this strength by breaking above key short-term resistance levels increasing their hopes for a move towards $2,000 again.
Gold price has broken above the trend line resistance. Price has also move above recent high at $1,931 starting a new sequence of higher highs and higher lows, since yesterday's $1,882 pull back did not violate the September low at $1,848. Now the $1,882 level rises in importance and bulls do not want to see price below it. On the other hand bears have a lot of work to do.
As we said in previous posts, it is important to focus on the weekly chart this week and not in the short-term ups and downs as volatility due to the elections has pushed price to extremes. Tomorrow is last trading session for the week and a good solid close above $1,950 would be a big win for bulls that could promise bullish weeks to come until the end of the month.
