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Trend line

15.07.202019:12 Forex Analysis & Reviews: Gold technical analysis

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Gold price is in a bullish trend. This can be seen by the sequence of higher highs and higher lows price is making. As long as this sequence continues we remain optimistic for reaching $1,830.

Black lines - bullish channel

Blue rectangles- higher lows

Gold price as shown in the weekly chart above is inside rising parallel lines. The bullish channel. With blue rectangles are shown the higher lows that are important for the trend. Gold price now is near the upper channel boundary. Although trend is bullish, this is not the time to open new long positions as the risk of a pull back is high. The best strategy for longer-term traders is to raise their protective stops.

In the short-term the strategy that can be followed is different.

Blue rectangle- short-term support

Black line -resistance

Gold price is trying to break the resistance trend line as shown in the 4 hour chart above. As long as price is above the blue rectangle we expect a break to the upside. Breaking above the black trend line will confirm our bullish short-term view and price will be expected to move towards $1,830. Any move below the blue rectangle will make us neutral for the short-term.

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