Technical outlook:
Gold has been drifting sideways since the last few trading sessions after taking out resistance at $1,809 levels. The consolidation structure looks similar to a triangle, which might be complete around $1,790. If the structure holds good, the yellow metal should push above $1,810 levels in the next leg higher. Bulls are targeting $1,834 resistance before pulling back.
Gold prices have recently found support around the Fibonacci 0.50 retracement of the recent upswing between $1,761 and $1,813 levels respectively. Probability remains for a re-test of $1,780-82 initial support zone, before resuming higher. The next in-line resistance is at $1,834, while support comes in around $1,761 levels respectively.
Also note that Gold prices have bounced off its support trend line since $1,721 lows. This is also encouraging for the bulls to continue higher towards $1,785 and up to $1865 levels going forward. Traders might be prepared to initiate fresh long positions with risk below $1,721 and potential target above $1,835 mark.
Trading plan:
Potential rally towards $1,865, against $1,721.
Good luck!
