Gold price remains trapped between $1,900 and $1,850. So far bulls remain in control as price continues to climb the upward sloping support trend line. Price is still below major resistance trend line but as long as support does not fail, bulls have hopes for a break out above $1,900 and a move towards $1,950.
Red line -support trend line
Gold price so far made two attempts on the green resistance trend line and each time price got rejected. We can clearly see the two attempts by the long upper tail on those two candlesticks. Supportive of the bullish case is the fact that price continues to hold above the red trend line. How long will this last. We expect over the next few sessions to have an important trading signal for Gold. We do not know if it will be bullish or bearish, that is why it is preferred to be neutral until then. Traders that want to take extra risk would prefer to be short as long as price is below $1,900 expecting a downward reversal and another rejection soon.
