Gold price made a slight new lower low yesterday and bounced $10. Gold price as said in previous posts is about to end the bearish move from $1,346 and make a bounce as a back test towards $1,300.
Red lines - bullish divergence
Gold price showed some bullish divergence signs yesterday as the RSI was not making new lows when price was. Gold price is expected to move at least towards $1,300 for a corrective bounce relative to the decline that started at $1,333. Gold is showing short-term reversal signs to the upside targeting $1,300-$1,305 area. Support is at $1,280 and as long as we hold this level we expect a strong bounce towards $1,300. Breaking below support would open the way for a move towards $1,270-60. Resistance is also found at $1,313 and next at $1,330-33.The material has been provided by InstaForex Company - www.instaforex.com