Gold in an uptrend, but beware bearish breakout
- Gold price seems to be forming rising wedge-like pattern on the chart
- Keep an eye on trend lines drawn on RSI for direction of the trend
- Breakouts are bearish about 70% of the time
- A bearish breakout could see the price drop to pattern low around $1,045/oz
- Support levels for XAUUSD are at $1,200 and $1,100/oz
- Gold's short-term uptrend looks solid as long as it keeps above $1,300/oz.
- Bullish breakout could target the $1,400-1,430/oz level
Support levels are $1,200 and $1,100/oz.
There is currently divergence on RSI, but it does look like it will break the falling trend line taking out the RSI peak from June 15 (circle on the chart) followed by a likely new high reading. The moving average convergence divergence (MACD) momentum indicator still indicates that there could be more upside.
If you're long, look out for $1,300/oz.