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12.07.201915:04 Forex Analysis & Reviews: Weekly analysis on Gold

Long-term review

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Gold price has trouble on a weekly basis to capture the $1,450-$1,440 level. This is a confirmed major resistance and puts short-term trend in danger. Prices are vulnerable to a pull back towards $1,300 as long as price gets rejected each time we challenge $1,440-50.

Yellow rectangle - long upper tails, signs of selling pressure

Blue line -long-term resistance trend line broken

Green line -long-term support trend line

Gold price has broken above the long-term resistance trend line and is in a medium-term bullish trend. As long as price is above the green trend line support, bulls have nothing to fear. Of course a break below the blue trend line support (previously resistance) would not be welcomed. In the last three weeks we see long upper tails in the Daily candlesticks. This is a sign that resistance is strong in this area and bulls are not strong enough. Short-term support is at $1,385-90 and if this level breaks, traders should expect a reversal towards $1,350-$1,300.

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