Gold moved upwards nearly 40 pips within an hour on early trading today. Prices broke above the 1,288 yesterday's high and reached 1,320 earlier today. The price pattern looks impulsive and the trend is changing to bullish at least in the short term. 1,250 is an important support now and 1,270 is an intermediate support. The sudden upward spike has moved prices above the H&S neckline and is testing the longer-term downward sloping trendline.
The short-term downward sloping trendline was broken upwards and is now being back tested. Three upward waves from 1,250. Intermediate low at 1,268 should hold for prices to continue upwards. Short-term resistance is now found at 1,325-30 and afterwards at 1,350. Short-term support is found at 1,290 and 1,270.
The daily chart shows clearly that the downtrend is being challenged. Breaking above the red downward trendline will open the way for a move towards 1,350-1,400. The H&S neckline remains critical support. If broken, the lows at 1,250 will be challenged. If the lows are broken, then we shall see 1,180-1,150.
