Gold price is trading just above $1,240 and is consolidating. Gold price is trading above short-term support levels and could soon make an upward break out towards $1,280. If $1,240 holds, we should expect a buy signal when $1,250 is broken to bring us back up to $1,280-90.
Gold price is below the Ichimoku cloud and the trend remains down. However a small bullish wedge is being formed and a break out above it will signal a strong bounce is coming. If support at $1,240 fails to hold price, then we should expect Gold price to reach closer to the 76.4% Fibonacci retracement towards $1,230.
Either way it would be wise to take profits from our short positions that we opened when the triangle was broken. For now bears should play it safe and lower the stops to protect their profits as there is increased probability of an upward bounce towards $1,280-$1,300.
