Support is being held by Gold prices and the possibility for a new high towards 1,400 is very real. The downward price actions seems corrective and as long as prices trade within the upward sloping channel, then we should expect another leg higher towards 1,390-1,400.
Short term support is found at 1,356 and 1,350. Short term resistance is found at 1,367 and then at 1,382. If resistance breaks then we target 1,390-1,400. If support breaks then we could see a pull back towards 1,340. We believe it is more possible to see an upward break towards 1,390-1,400.
Even at the daily chart we observe that prices are most probably consolidating before another push higher towards 1,400. Entering long positions near the blue sideways support trend line are advised as this will minimise risk. We prefer taking long positions near supports and add to those long positions is resistance levels break and at the same time raising our stop. Always trade with stops in order to protect yourselves.
Concluding, we are mildly bullish target 1,400 as Gold prices seem supported at 1,350.
