Gold price is trading very close to important short-term resistance. Price as we mentioned in a previous analysis is trading inside a trading range and if price breaks out of the trading range, we will have a trading signal.
Blue line -lower boundary of trading range
Red lines - expected size of upward move if resistance is broken.
Gold price is trading very close to the $1,799 resistance. Breaking above it will give an upward thrust to price equal to the size of the trading range. This bullish signal if given, will give $1,737 as the first target. Bulls need to continue making higher highs and higher lows and they can achieve even higher levels above $1,837. Support is at $1,787 and if broken there is danger that we could see another pull back towards the lower boundary of the trading range. Breaking the lower boundary will open the way for a decline towards $1,740.
