Gold has bounced upwards as expected from 1,260 and reached 1,290-1,300 resistance. Now prices are testing the red downward sloping trend line and, at first glance, the try are being rejected. Short-term resistance stands at 1,290 and for the upward bounce to continue, prices will certainly need to break above that level today. Staying below the downward sloping trendline is a bearish indication.
Short-term support is found at 1,270. Breaking below that level will be bad for bulls as the upward move is not yet a clear 5 wave pattern. The upward sloping trend line as shown in the chart above starting from the 1,260 lows, provides support for Gold prices at 1,270-74. If prices break above the 1,290-91 resistance, we could see a move towards 1,315. It will be good for the short-term uptrend to stay above the purple trend line.
The daily chart shows the upward bouce is starting to take shape as expected. The upward sloping blue trend line provides longer-term support for Gold prices. We expect prices to reach the first downward sloping red trend line if the blue support line holds. This means that as long as prices trade above 1,270-60 we should expect a bounce towards 1,315-30.
