FX.co ★ Gold technical analysis for February 24, 2016

Gold price broke out and above the triangle pattern I mentioned yesterday and today we see a back test of this breakout. Important support for the medium-term trend is $1,200. So, as long as we are above it, bulls will have the upper hand. A target for the continuation of this uptrend is $1,300, but a breakout below $1,200 will open the way to $1,150-$1,100.

Blue lines - triangle pattern

Gold price is back testing the broken triangle upper boundary. The price is also above the Ichimoku cloud and the tenkan- and kijun-sen indicators. Resistance is at $1,233-39. A breakout above this area will open the way to $1,300. Support is critical at $1,205-$1,200, so as long as we are above it, bulls are in control.

In the weekly chart above, two long-tailed candles imply support at $1,200 is important one as buyers continue to step in and support the price. This increases the chances of the bullish scenario mentioned in my last analysis of a short-term consolidation and a new upward breakout towards $1,300 to take place.