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18.07.201916:06 Forex Analysis & Reviews: Gold price back tests break out area

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Gold price after it broke above the short-term resistance of $1,415-20 has reached $1,430 and is now back testing the break out area around $1,420. Failure to stay above the break out level will be a bearish sign and a sign of a false break out.

Yellow rectangle - major resistance and double top

Black line -resistance trend line

Red rectangle - support area

Gold price has managed to break above short-term resistance area and above the black downward sloping trend line resistance. Price made a new short-term high but still below the 2019 highs of $1,440. Price is now back testing the black trend line resistance that is broken. A bounce of this trend line would be a bullish sign and a confirmation of the breakout. Failure to stay above it and break back below $1,410 would not be good news for bulls. Bears on the other hand want to see price reverse and break below the $1,400 low. Until then there are more chances of an upward continuation.

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