Gold rejected at key short-term resistance
Gold price managed to briefly push above the key short-term resistance of $1,912 but sellers were stronger and price closed the 4 hour candlestick below the resistance level. This rejection is not a good sign for Gold bulls, however bulls still have hopes as long as price continues to make higher highs and higher lows.
Red line – short-term resistance
Blue line- support trend line
Green rectangles- higher lows
Gold price is making higher lows along the blue upward sloping support trend line. But price is not breaking above the $1,912 resistance. If resistance breaks then Gold bulls will still have to break above another important resistance level. The $1,925 is the resistance level by the downward sloping resistance trend line that touches the recent 4 local highs.
Red line -resistance
One thing is for sure, bulls have a lot of work ahead of them in order to reclaim the $2,000 price level. A rejection at current levels and a break below $1,900 will increase chances for a deeper correction towards $1,850-$1,800. Traders need to be patient and watch the key levels as both scenarios are equally possible. Price now i closer to resistance so bulls need to be cautious.
The material has been provided by InstaForex Company – www.instaforex.com