Red lines- bearish channel
Gold price is trading around $1,921. After the strong bounce last Friday from $1,868 to $1,932, Gold price is now consolidating near its recent highs. This is important resistance area because here we also find the upper channel boundary. Gold longs are still not out of danger. Price remains inside the red downward sloping channel. Price is challenging the upper channel boundary. Bulls need to break above this level in order to hope for a bigger move higher. With current market conditions I believe that the upside potential is limited to a move towards $1,950. Bulls better be patient and cautious and wait for a pull back before entering long. At current levels I prefer to be neutral if not bearish Gold.
