Gold price is trading just above $1,800 after bouncing off the long-term support trend line at $1,780 area. We warned bears on time that as long as price is holding the support trend line from $1,684, when approaching the trend line we turn bullish.
Blue lines - expected move higher
Green line- major support
Red line - major resistance
Black lines -Fibonacci retracements
Gold price has most probably finished the decline from $1,854 and is now starting a new upward move after testing the major support trend line. Price has so far retraced 38% of the decline and forming a higher low if followed by a higher high, will lead price towards the 61.8% Fibonacci retracement and the $1,820-25 area at least. This is our first target. Our second target is at the red trend line resistance around $1,850. Bulls do not want to see price fall below $1,790.
