Gold price broke above short-term resistance we mentioned yesterday and has already reached our short-term target of $1,868. Gold price is moving higher and staying above $1,850 is crucial for the bullish scenario.
Blue line - resistance
Yellow rectangle - target
Gold price was showing bullish reversal signs. Breaking above the resistance trend line combined with the bullish RSI divergence made us more optimistic. Our Fibonacci 100% extension target has been reached already and our next target is at $1,890. Support is at $1,845 and $1,830. Bulls must defend these two levels. A daily close below $1,830 would be a very bearish sign. A weekly close below $1,850 will also be a bearish sign.
