Gold is expected to move higher towards $1,294.00 (resistance cluster) as long as the support at $1,276.00 is holding. Gold failed to test the Pitchfork median line, which is a sign that selling power decreased. Stochastic is in the oversold zone together with hidden bullish divergence, which adds more potential strength on Gold. Only a break below support at $1,276.00 will change this bullish trading idea and stop us for our bullish view.
Trading recommendation: We will buy Gold on the breakout of the resistance at $1,284.00 with a target at $1,294.00 and protective stop at $1,276.00. Watch for a breakout of resistance before buying.
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