Gold traded higher in past 24h period as we expected and level of $1.278 provided great support. We expect further upward movement and potential test of upper references.
Yellow rectangle – Short-term resistance, which became key support
Blue moving average – 20EMA acting like support
Green rectangle – Resistance based on price action
Green rectangle – Resistance 2 based on price action
Green rectangle – Resistance 3 based on price action
Gold did successful rejection of the key support at the price of $1.278, which is good sign for further upward price. Our advice is to watch for buying opportunities. Upward references are set at the price of $1.294.30, $1.300.95 and $1.310.00. As long as the Gold is trading above the $1.265.00, the short term-trend remains bullish. Medium Keltner average (20EMA) is acting like support together with rising ADX reading, which adds more potential for upside.