Hello traders! Following our previous analysis on Gold, the uptrend was expected, and in fact, it might be not over. On the 30-minute chart, we can see that the price broke above the ascending channel and the 200 Exponential Moving Average. After that, it has found the support at 50% Fibonacci retracement level, which is $1577.
Overall, higher highs and higher lows are being printed, which could bring the price towards the upper trendline of the extended ascending channel. The trendline also corresponds to the 88.6% Fibonacci retracement level, which means that the upside target could be around $1674 area.
On the 15-minute chart, we can see a clean bounce off the 200 EMA. Price has attempted to break and close below but failed. The support area has been formed between $1606 and 1613, where the price can potentially drop. But all-in-all it is a clear uptrend which should push the price towards $1674 area. This target also corresponds to 261.8% Fibonacci retracement level applied to the corrective wave down after the breakout of the ascending channel.
On the downside, only 4h break and close below $1600 psychological support could invalidate bullish outlook and result in a trend reversal,
Bias: Strongly bullish while above $1600
Potential Support Zone: 1606 – 1613
Potential Targets: 1674
Have a profitable trading!