Technical Analysis of Gold for July 4, 2016
Gold price continues to move higher towards our $1,400 target as we suggested from last week. Bulls should raise their stops to $1.328 at least if not $1,333. I remain bullish Gold.
Black lines - triangle (broken)
Gold price has reached the post-Brexit highs as we expected and I believe it can continue higher towards $1,400 over this week. Trend is bullish as price is making higher highs and higher lows while price stays above both the tenkan- and kijun-sen indicators. Support is at $1,340 and resistance at $1,360.
Red lines - widening triangle
Resistance at $1,360-70 could prove strong if this widening triangle scenario plays out. Either way bulls should be cautious as a pull back is justified. Taking profits is not a bad idea but this rally can extend even above $1,400. Trend is clearly bullish and we remain bullish as I believe the long-term trend has reversed.