Gold price finds it difficult to break above $1,755-60 horizontal resistance
Gold bulls have managed to recapture the $1,720-40 level and this was an important win for them in the battle to approach $1,800 again. Price has now stopped and has showed rejection signs at the horizontal resistance of $1,755-60.
Green lines – bearish channel
Blue line – horizontal resistance
Gold price is getting rejected for the third time at the blue horizontal trend line. This trend line has proven important over the last few months as it was tested and provided support or resistance several times. The rejection at this horizontal resistance is not necessarily bad. Gold price needs a pull back towards $1,740-20 area in order to regain momentum and gather more strength for an upward break above $1,760 and to finally reach $1,780 our first target after breaking $1,740. This pull back is a buying opportunity in Gold.
The material has been provided by InstaForex Company – www.instaforex.com