Gold price finally broke above $1,830 and provided us with a bullish signal. Gold price can continue higher towards $1,860 where we find the key long-term trend line resistance. Gold price is still trapped inside a bit triangle pattern.
Red rectangle- resistance (broken)
Green line -support
Red line- resistance
Gold price despite getting rejected three times at $1,830, managed to form higher lows and gather strength for the break out. Gold is expected to continue higher towards the red resistance trend line. This is our next big test. Gold price is making higher highs and higher lows since December 15 when it fell towards $1,752. If Gold breaks above the red resistance trend line and above the previous high of $1,876, then there will be increased chances of reaching as high as $1,940 at least.
The material has been provided by InstaForex Company – www.instaforex.com